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Wells Fargo is in breakout mode today.  Shares are up 2.5% as it continues to lift off solid footing(50D MAV).  This move is piercing a key overhead trendline that links the previous four monthly highs.  We expect WFC to extend the November rally.  Initial target is the declining 200D($28.00).

WFC went on to hit new 2020 lows in May and did so again in late October.  The BKX(KBW Bank Sector Index), which WFC is a top five holding(7%), did not reach a new low since the March bottom.  The BKX is heading for its best weekly close since late February. 

WFC has been tracing out a huge MACD divergence since mid May.  

A close back below $23.00 would be a clear warning sign that more basing is ahead.

No position.