When markets are climbing, many traders who sold early often regret their decision. They watch as the stocks they sold continue to rise, missing out on further gains.

This seller's remorse, a common phenomenon in bull markets, is often visible on stock charts, as traders rush to buy back shares they sold too soon. That's why Wells Fargo & Company (NYSE:WFC) is our Stock of the Day. It is an excellent example of this price action

As you can see on the chart, the $46.80 level was resistance in July 2023. After hitting this resistance, the stock reversed and went lower.

But in December 2023 the resistance was broken and the shares moved higher. When this occurred, some of the traders and investors who sold while the stock was at resistance came to regret their decisions to do so.

Some remorseful sellers decided to buy their shares back at the same price they had sold them, hoping to undo the mistake they felt they made by selling too early.

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As a result, after Wells Fargo sold off and returned to the $46.80 level, these remorseful sellers placed buy orders. There were so many of them that it created support at the same price level that had previously been resistance.

The next important resistance was the $51.20 level. The shares stalled out here in early February. Then in late February, this resistance was broken and the stock took off.

When this happened a number of those who sold while the shares were at resistance came to think they made a mistake. So, they decide that they will buy their shares back if they can eventually do so at the same price they were sold for.

When the price eventually dropped back to this level in August, they placed buy orders. And there were so many of these orders that it created support at the same price that had been resistance.

Price levels that were resistance can convert into support. This is a common occurrence in the financial markets. It happens because of sellers' remorse, and the chart of Wells Fargo is a good example of it.

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