As you all know, Wells Fargo & Co(NYSE:WFC) stock has been declining for quite some time now. The company was caught in a bogus account scandal that has resulted in numerous fines and congressional investigations. These problems at the bank are still lingering, but history suggests that Wells Fargo & Co will resolve these issues eventually.
Recently, the stock topped out on June 29th at $56.60 a share. Since that high pivot in the stock the price has now declined to $50.97 a share. The stock is also trading below its important 50 and 200-day moving averages. This formation puts the stock in a weak technical position. Traders and investors should watch the $46.00 area as the next major support level on the chart. This is an area that was defended in November 2016. Often, past levels that are support will be defended again when retested. This is a spot where the stock should catch a bid.