Wells Fargo & Company (WFC)
Wells Fargo & Company is an American multinational financial services company with corporate headquarters in San Francisco, California, operational headquarters in Manhattan, and managerial offices throughout the United States and overseas.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 94.20% per annum.
- WFC price at the close of July 25, 2024 was $59.70 and was lower than the bottom border of the primary price channel by $3.40 (5.40%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 12.54% per annum.
- WFC price at the close of July 25, 2024 was inside the secondary price channel.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of WFC price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: August 22, 2023
End date: June 3, 2024
a = 0.9149
b = 0.0018
s = 0.0452
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0018) – 1
= 94.20%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0452) – 1
= 19.84%
August 22, 2023 calculations
Top border of price channel:
Exp(Y1,025)
= Exp(a + b × X1,025 + 2 × s)
= Exp(a + b × 1,488 + 2 × s)
= Exp(0.9149 + 0.0018 × 1,488 + 2 × 0.0452)
= Exp(3.7111)
= $40.90
Bottom border of price channel:
Exp(Y1,025)
= Exp(a + b × X1,025 – 2 × s)
= Exp(a + b × 1,488 – 2 × s)
= Exp(0.9149 + 0.0018 × 1,488 – 2 × 0.0452)
= Exp(3.5302)
= $34.13
June 3, 2024 calculations
Top border of price channel:
Exp(Y1,221)
= Exp(a + b × X1,221 + 2 × s)
= Exp(a + b × 1,774 + 2 × s)
= Exp(0.9149 + 0.0018 × 1,774 + 2 × 0.0452)
= Exp(4.2312)
= $68.80
Bottom border of price channel:
Exp(Y1,221)
= Exp(a + b × X1,221 – 2 × s)
= Exp(a + b × 1,774 – 2 × s)
= Exp(0.9149 + 0.0018 × 1,774 – 2 × 0.0452)
= Exp(4.0502)
= $57.41
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 94.20% per annum.
- WFC price at the close of July 25, 2024 was $59.70 and was lower than the bottom border of the primary price channel by $3.40 (5.40%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: March 4, 2024
End date: July 25, 2024
a = 3.5031
b = 0.0003
s = 0.0249
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0003) – 1
= 12.54%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0249) – 1
= 10.48%
March 4, 2024 calculations
Top border of price channel:
Exp(Y1,158)
= Exp(a + b × X1,158 + 2 × s)
= Exp(a + b × 1,683 + 2 × s)
= Exp(3.5031 + 0.0003 × 1,683 + 2 × 0.0249)
= Exp(4.0978)
= $60.21
Bottom border of price channel:
Exp(Y1,158)
= Exp(a + b × X1,158 – 2 × s)
= Exp(a + b × 1,683 – 2 × s)
= Exp(3.5031 + 0.0003 × 1,683 – 2 × 0.0249)
= Exp(3.9982)
= $54.50
July 25, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(3.5031 + 0.0003 × 1,826 + 2 × 0.0249)
= Exp(4.1441)
= $63.06
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.5031 + 0.0003 × 1,826 – 2 × 0.0249)
= Exp(4.0445)
= $57.08
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 12.54% per annum.
- WFC price at the close of July 25, 2024 was inside the secondary price channel.