Wells Fargo shares drop a third straight session on Wednesday, 2016 bonuses for holding’s top management to be eliminated

According to people with knowledge of the matter, 2016 bonuses for Wells Fargos top managers are likely to be eliminated, following last years sales scandal. On February 8th the Wall Street Journal reported that the groups board had held a meeting in January, discussing a probable bonus suspension for top executives, including Wells Fargos Chief Executive Officer Timothy Sloan and Chief Financial Officer John Shrewsberry. A spokesperson for the holding company refused to comment on the situation.

Wells Fargo shares closed lower for a third straight session on Wednesday. The stock went down 1.26% ($0.71) to $55.63, after touching a daily low at $55.17, or a level not seen since January 24th ($54.13). In the week ended on February 5th the shares of the bank holding company added 1.20% to their market value compared to a week ago, which marked a second consecutive period of gains. However, the stock has erased earlier monthly advance and is now down 1.24% so far during February, following a 2.21% surge in January. The latter has been a fourth straight month of gains, but yet, the smallest increase since last July. For the entire 2016, the shares of the NYSE-listed holding company gained 1.38%.

The boards decision is to be finalized during the upcoming weeks, according to WSJ. It could have an impact on annual incentive awards, which are paid in cash or stock.

Last September the financial holding agreed to pay $185 million in order to settle charges that its employees created 2 million deposit and credit card accounts without being permitted by clients. In relation with the sales scandal, an array of federal and state investigations was triggered, 5 300 Wells Fargo branch employees were laid off, while the group’s former CEO John Stumpf resigned.

Timothy Sloan was Chief Operating Officer at Wells Fargo, before assuming the CEO role.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Wells Fargo stock are presented as follows:

R1 – $55.73
R2 – $55.82
R3 (Range Resistance – Sell) – $55.92
R4 (Long Breakout) – $56.20
R5 (Breakout Target 1) – $56.54
R6 (Breakout Target 2) – $56.68

S1 – $55.53
S2 – $55.44
S3 (Range Support – Buy) – $55.34
S4 (Short Breakout) – $55.06
S5 (Breakout Target 1) – $54.72
S6 (Breakout Target 2) – $54.58

By using the traditional method of calculation, the weekly levels of importance for Wells Fargo & Company (WFC) are presented as follows:

Central Pivot Point – $56.65
R1 – $57.90
R2 – $58.53
R3 – $59.78
R4 – $61.03

S1 – $56.02
S2 – $54.77
S3 – $54.14
S4 – $53.51