Wells Fargo stock price forecast: short-term weakness as WFC dips sharply below support

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Wells Fargo slides 1.91% to $93.15

Highlights

Wells Fargo will report its fourth quarter 2025 earnings on January 14 before the market opens, with consensus revenue estimates near $21.89 billion and EPS between $1.66 and $1.70.
The bank has outperformed earnings estimates in the last four quarters, posting a trailing average earnings surprise of 7.5%.
Recently, large institutional investors including Nordea Investment Management AB, Sumitomo Mitsui Trust Group Inc., and Tema Etfs LLC have increased their positions in Wells Fargo.

Institutional flows and earnings optimism underpin bullish sentiment

Wells Fargo will report its fourth quarter 2025 earnings on January 14 before the market opens. The bank has outperformed earnings estimates in the last four quarters, with a trailing average earnings surprise of 7.5%. In the most recent quarter, it posted revenues of $21.4 billion, and expectations for Q4 2025 are for revenues near $21.89 billion and EPS between $1.66 and $1.70. Recently, large institutional investors including Nordea Investment Management AB, Sumitomo Mitsui Trust Group Inc., and Tema Etfs LLC have increased their positions in Wells Fargo.

Divergent momentum signals amid intraday volatility and bearish swing

Momentum readings show the daily MACD remains decisively bullish, but the ADX indicates a moderately trending market at best. The RSI is in neutral, while Stochastic RSI points to oversold conditions, and the Commodity Channel Index is also neutral, indicating mixed signals on exhaustion versus support. Bull/Bear Power leans overbought but with a recent swing to seller control intraday. The current price sits near the day’s low, with a noticeable gap down at the open and a 1.91% slide suggesting sellers are driving high intraday volatility. There is divergence between bullish daily momentum and persistent intraday weakness; short-term indicators reflect pressure after the open, contrasting with supportive long-term signals.

Sideways bias with upward trend vulnerable to intraday selling

Looking ahead, the expected price range for WFC over the next 5 trading days is $92.50 to $95.70. The probability of a price increase is very high (more than 80%), while a decrease appears less likely. The baseline scenario is a sideways consolidation between $92.50 and $95.70, consistent with typical volatility for the current environment. If bulls reclaim momentum, a move above $95.70 could open the path to further upside; conversely, a close below $92.50 would indicate renewed downside risk and test lower supports. Overall, the broader trend remains upward, but the immediate tone is vulnerable to further intraday selling before stabilization.

Anton Kharitonov, analyst at Traders Union, sees Wells Fargo showing mixed signals as short-term selling contrasts with longer-term bullish structure. He notes cautious optimism from rising institutional positions and consistent earnings surprises, but warns that recent intraday volatility suggests vulnerability. Technical indicators point to neutral-to-defensive action in the coming days, with $92.50 as a key support and $95.70 as resistance. "Until Wells Fargo reclaims momentum above $95.70, I remain cautious and will wait for confirmation before adopting a bullish stance."

Source of Data: WFC Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.