Wells Fargo - Short Term Sell Opportunity
Updated
The currencies market has been slow the last two weeks. This is where having a stock/equities portfolio comes in play.
Short term wise, we do have a sell opportunity on Wells Fargo, WFC.
Fundamental analysis
1) Revenue has been growing, but net income has been falling;
2) Operating cash flow and FCF dropped drastically; and
3) Both ROA and ROE has been dropping.
All these fundamental financial ratios are concerning for WFC.
Technical analysis
We have seen price completed a 5-wave structure, and is potentially still in a correction. Price made an impulse drop from 59.97 to 51.22 recently and has since been moving sideways. Looking at how price is currently developing, we are expecting one more move to the downside after one more push to the upside between 56.18 to 57.84 region.
Potential target for the short term sell opportunity will be around 48.84 to 49.85 area.
**Do you own due diligence as this is simply one perspective of the market.
Short term wise, we do have a sell opportunity on Wells Fargo, WFC.
Fundamental analysis
1) Revenue has been growing, but net income has been falling;
2) Operating cash flow and FCF dropped drastically; and
3) Both ROA and ROE has been dropping.
All these fundamental financial ratios are concerning for WFC.
Technical analysis
We have seen price completed a 5-wave structure, and is potentially still in a correction. Price made an impulse drop from 59.97 to 51.22 recently and has since been moving sideways. Looking at how price is currently developing, we are expecting one more move to the downside after one more push to the upside between 56.18 to 57.84 region.
Potential target for the short term sell opportunity will be around 48.84 to 49.85 area.
**Do you own due diligence as this is simply one perspective of the market.
Note
How low further can price of WFC head lower? The expectation on this is around 47.42 or even lower towards 45.26.However, we wouldn't be surprise if price starts to move higher from here too.
Price has been moving lower 'correctively', showing us that it is losing momentum to the downside. Thus instead of looking for short trades, we would be waiting for a good buy setup.
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