WFC has certainly taken its lumps from all the shenanigans they were up to & were called out on. However, the stock looks to be in a better technical posture than most of the other big banks breaking out today following a divergent low on the daily chart while sitting just above long-term support on the weekly chart (both below)
With that being said, a ZIRP policy is not favorable to banks as their spreads are compressed. Yes, they’ve been benefiting from the strong housing market lately but I see very little upside there & with the Fed pledging to lock in the ZIRP policy into 2023 today, I think that the bank stocks may turn out to be mostly a dead-money trade, at best, over the next year or so. There will likely be plenty of tactical (quick in & out) trades on the banks, long & short, but I don’t plan to put any long-term funds in the sector anytime soon.