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WFC

BAC rising from support LONGBAC on the daily recently descended from an asymmetrical head and shoulders pattern near to or in the supply zone as indicated by the Luxalgo indicator down into the demand zone in late March and early May for a double bottom. Fundamentally, the banking system has been propped up by the federal central banking mechanisms and the situation seems to have stabilized. DPST and KRE banking ETFs have had some good days of late. On the chart the Luxalgo Echo indicator, a predictive algorithmic tool, suggests that BAC will rise during this summer and then bounced down from the resistance of the trendline of the neck of the asymmetrical H & S. I can easily conclude that BAC is ripe for a long trade. I will take an out of the money call option for DTE 9/20 striking #37.00. I will set the stop loss at 20% - Of the 15 contracts, I will close 2 after each 20% profit level is achieved and expect to make overall 150-250% by mid-August. Because of time decay, I will not carry these open beyond September 1st.
NYSE:BACLong
by AwesomeAvani
Free Market vs The FedAs of late, the vast majority of us probably have been hearing about "too big to fail" or " a free market vs. a central market" What does all of this mean?" Well, let's go over some of the basic stuff. As in some of my prior posts, it is important to understand that the "Fed" does NOT control mortgage rates or loan rates from your local banks. Let me repeat that the Fed does NOT control mortgage rates or consumer loan rates So now you might ask yourself why the Fed raises rates matter? Well, that's a great question. Because, in short, it should not matter if we were in a free market. Well, sadly, we are not in a free market. We are in a centralized market with different flavors available to us. "Ah, but Guy, you just contradicted yourself by saying the fed does not control mortgage rates, and now you're saying we're in a controlled market rabel rabel rabel " Let me explain... The Fed cannot have any direct contact with "average" consumers; it's currently illegal FOR NOW . Now, everyone, the biggest fear with CBDC is a rightfully placed fear. And we will discuss this in a separate post. So, view the Federal Reserve's manipulation of the economy as a game of pool (billiards) or snooker; what have you. In billiards (for the purpose of the post, billiards = pool), the player cannot directly hit the numbered balls with the stick (cue). Instead, one must use a medium to engage the cue ball. So, to pocket your balls, you must have a small degree of understanding of physics to transfer energy from you to the stick to the cue ball to the desired ball into the desired pocket. The Fed (cue) is the same way. They set the FFR (cue ball), which then goes to the regional and big banks (numbered balls), which then sink into the economy (pocket) So, how does this work? To explain that, you need to understand how a bank makes money. (The Following is highly watered down for simplicity's sake) A bank does not make money because you have an account with them. On the other hand, a bank makes money BECAUSE you have an account with them. So when you use your local JPM, WFC, or C bank :) as a piggy bank, they pay you an interest rate of something like a percent of a percent; however, it's still considered a liability to the bank because that's cash flow going to you from them even if it's a penny a year. So, how can they make money then? The fractional Reserve system. Mike Maloney debates this, and I'm super interested in hearing his thoughts on this... another post for another time. What is the Fractional Reserve System? Basically, for every dollar you put into your account, the bank can lend out 10$ It's basically in place because you're not running to the bank to close your account. So, they can do this. When you put money into your account, it's already out the door into someone else's pocket in the form of a loan by the time you place your wallet in your pocket/ purse what have you. And that's probably too slow for the bank. (velocity of money) Well, that bank's balance sheet of physical liquid cash probably only is enough to pay the onsite staff hourly wage the bank needs more. so they have one of two options 1. go to the Fed and borrow money at the FFR 2. go to the repo market and borrow from another bank by offering t-bills and bonds as collateral. (shadow banking) Typically they go with number one because it's cheaper. The vast majority of times they use the repo market is for cash now! or if their risk management department is trying to make some quick cash off the bond market. (shadow banking is outside the purview of this post, and I'm still learning about it. I will post about it later) ( the fed lining up their billiard shot) So, the Fed has decided the US economy needs to grow more... (the Fed hitting the cue ball) So, lets say the Fed makes the FFR 0% (hypothetically LOL) ( the cue ball hits the numbered ball) So your local JPM will go to the Fed and take out a loan at 0%, so they need to lend this money out and make money, and make their, JPM's rate, interest rate on that money 3% LOL! (The numbered ball sinks into the desired pocket) you the consumer want to go out and buy something you can afford on your 9-5 salary. So you go to the bank and qualify for a loan at their 3% rate to be amortized over 10-30 years, and the economy grows. If that sounds familiar its coincidence LOL However, in a free market how it would work is the loan system would be heavily dependent on the local economy and local wage potential. How? If a bank is set up in an area with low-income earning potential, then the market will tell the bank exactly how much they can charge on money. Example: let's say the Risk Manager at your local WFC decides he is conservative and makes the DTI Ratio for loans 30%. That means the minimum someone must make for a 200,000$ loan is around 60,000$. If the local median income is 45,000$, no one can afford a 200,000$ loan. The maximum loan amount they can make is around 150,000$. So, for the bank to grow, it either needs to up the DTI requirements, it needs to be content with its current earnings and hope the area grows or wages increase, or it can close down and move. Now where the free market comes into play is when WFC is having their DTI at 30%, JPM is at 40%, and C is at 60%, (free market remember) in the same area as the example The following happens: WFC sees their default rate is less than 10% JPM sees thier default rate at 40% C sees thier default rate in the upper 80%. So, what this means is that the market is telling WFC they are leaving money on the table but are playing it safe. Because less people qualify for the loan JPM has almost found the sweet spot. 40% of their loans are in default, but more than half are paid on time. could use some minor tweaking but solid none the less. (With my risk tolerance, 30-35% default is a good number depending on loan size.) C is in trouble because they have lent out too much, and people can't afford that much money in the area. So in a free market, WFC will fail in the area because they're not seeing enough volume, and C will fail because they're seeing too much volume. which leaves JPM to buy up both of the failing banks and grow bigger LOL!
OANDA:SPX500USD
by ARegularGuy
BAC Bank of America SHORTBAC is shown here on the 15 minute chart. Fundamentally, it is under pressure like many other banks including First Republic. On the chart, price is in a downtrend having bounced from VWAP (redline) in confluence with the blue line of the top of the high volume area of the volume profile. Price is underneath the blackline which is the 210 HMA. Only shorts should be taken underneath that line. The target is the thin red line below which is the bottom of the low volume area. Accordingly, the thin red line is the target while the thin blue line or the VWAP (thick red) are the stop loss levels. This is a very safe trade with an acceptable R:R. My put option @ $ 28.50 for expiration 5/12 gained 68% overnight. I will ride this down and then look for the reversal trade.
NYSE:BACShort
by AwesomeAvani
More moves for Wells Fargo to the downside. WFGWave C within a huge running flat, already completed Wave 1-3. There is one more push to the downside to go. Fibonacci gives some ideas for goals. We are not in the business of getting every prediction right, no one ever does and that is not the aim of the game. The Fibonacci targets are highlighted in purple with invalidation in red. Confirmation level, where relevant, is a pink dotted, finite line. Fibonacci goals, it is prudent to suggest, are nothing more than mere fractally evident and therefore statistically likely levels that the market will go to. Having said that, the market will always do what it wants and always has a mind of its own. Therefore, none of this is financial advice, so do your own research and rely only on your own analysis. Trading is a true one man sport. Good luck out there and stay safe.
NYSE:WFCShort
by Rykin_Capital
WFC bullish divergence Go long18% to be made on daily timeframe if the support holds today 1. RSI DIVERGENCE Daily timeframe 2. Strong support Area 3. 3 to 1 ratio buy opportunity Entry , SL and TP are shown on the chart. Good luck P * 𝗧𝗵𝗲 𝗶𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗮𝗻𝗮𝗹𝘆𝘀𝗶𝘀 𝘀𝗵𝗮𝗿𝗲𝗱 𝗶𝗻 𝘁𝗵𝗶𝘀 𝗽𝗼𝘀𝘁 𝗶𝘀 𝗻𝗼𝘁 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗮𝗱𝘃𝗶𝗰𝗲. 𝗔𝗹𝘄𝗮𝘆𝘀 𝗰𝗼𝗻𝗱𝘂𝗰𝘁 𝘆𝗼𝘂𝗿 𝗼𝘄𝗻 𝗮𝗻𝗮𝗹𝘆𝘀𝗶𝘀 𝗮𝗻𝗱 𝗿𝗲𝘀𝗲𝗮𝗿𝗰𝗵.
NYSE:WFCLong
by preduta
💾 Wells Fargo & Company Turns Bearish | Crash AheadWhat we are seeing with these banks are the side effects of massive monetary expansion. This is the result of the Covid money printing fest. We will soon enter the withdrawal phase ... Right now the banks are deep into the headaches. ✔️ Wells Fargo looks pretty bad. While last week you could say everything was fine based on the chart signals, this week nullifies months and months of recovery. Of course, there were many signals pointing to what is happening now from way back... If you track this chart you would be able to tell. The RSI and MACD peaked 2021, both have been building a very strong bearish divergence. The trading volume continues to decline and we have Elliot Wave Theory as well which calls for lower prices in the form of a correction. Let's look at the present time. Here is the chart: ✔️ The RSI jumped off a cliff. Trending lower strong. ✔️ This weeks candle moved below EMA10, EMA21, EMA50, EMA100, EMA300 and MA200; all in a single candle. ✔️ The highest bear volume bar is present this week since June 2022. This can be the start of the (C) wave in a classic ABC correction. The wave count is marked on the chart. The question comes up again, will Bitcoin crash together with the banks? It is possible but the charts are very similar. While these banks have gone down by 30%-40%, Bitcoin went down by 77% and they are going through the same pattern. Where these banks are headed is where Bitcoin has already been at but it can still go lower though. The things is that Bitcoin should work as an alternative to decaying banks, it was created to protect people for situations exactly like the one we are seeing now, to protect people from another 2008. We have to wait and see if the experiment will work. My hopes are very low though for these banks though. It is already being reported that the SIVB people paid their bonuses and did their insider trading before crashing everything... People are bound to get tired at some point. Namaste.
NYSE:WFCShort
by AlanSantana
WFC - Bearish but Dividend PendingWFC is up about 10% over the last month and even more since Dec of last year, however the weekly price closed down last week, and is now down two weeks in a row. Several bearish indications are suggesting a pull-back in price. However WFC will issue a dividend payment to shareholders on March 1st which is supporting the current price. Overall the WFC price appears to be breaking down/out of a multi-week wedge. I see limited upside and near term downside due to QT effects and overall liquidity issues in the market, and more specifically for WFC due to the reasons listed below. 1. High volume resistance associated with a significant +12% sell-off week of Feb 5th 2018. That week WFC had closing price of $47.57 and a low of $47.35. WFC has tried and failed to move through this area for the last three weeks. 2. Significant sell off at/near current price occurred in early 2020 - associated with 'global liquidity issues' a few months before the COVID crash. Week of Jan 13, 2020 WFC's price dropped over 6% on significant volume, falling from $48.35 to $45.28 adding significant resistance at/near current price range. 3. Trendline resistance - Trendline drawn off Jan 2018 and Nov 2021 highs and other significant trendlines continue to cap current price. Further, mid-line regression trend resistance is in-play as measured off the Oct 2020 low. 4. Potential double top formation. A double top with a re-test of the recent Nov 22 highs is currently in play/occurring for WFC. 5. Bearish Volume Trends - Buyers appear to be exiting in mass on the weekly timeframe. Similar trend as seen in late 2022 and early 2023 when the WFC price dropped by over 20%. Also of note - WFC was one of the stocks that dropped like a rock at the open on January 24th of this year and was "halted" with many trades being cancelled - not exactly sure what happened that day but I see it as a potential sign of things to come. Generally looking for WFC to move down during March 2023 after the $0.30 dividend payment on March 1st. NFA!
NYSE:WFCShort
by Akksujean
$WFC weekly chart going into tomorrow's earnings print Will the stock move to the $45.88 area or retest the $40.00 PL? The consensus earnings estimate is $0.63 per share on revenue of $20.01 billion. Investor sentiment going into the company's earnings release has 45% expecting an earnings beat. Consensus estimates are for earnings to decline year-over-year by 54.35% with revenue decreasing by 7.85%. Overall earnings estimates have been revised lower since the company's last earnings release. Option traders are pricing in a 5.2% move on earnings and the stock has averaged a 3.6% move in recent quarters.
NYSE:WFC
by Solidified
WFC potential on downtrend - Bearish WFC most likely on downtrend especially after it break out from the support line of Double Top pattern. Can notice that it is having high selling volume on date 20 Dec & 21 Dec which break out the support price 40.92 USD. This is a initial signal that it is bearish on WFC for future direction. However if the price move upward which higher than the orange resistant line (41.92), this mean the downtrend is not yet confirm Thus, for those interest to take the risk can consider : Short position : 40.95 USD Stop Loss: 41.92 USD (Risk 2.42%) Note that “Past performance does not guarantee future performance. This is for just my personal opinion but not trading advise.”
NYSE:WFCShort
by samleecomp
Short term short on Wells Fargo. WFCThis is very short term. Closed on the downward impulse, bouncing off the 5th wave origin. Down we go, it's like ping pong in here. We are not in the business of getting every prediction right, no one ever does and that is not the aim of the game. The Fibonacci targets are highlighted in purple with invalidation in red. Confirmation level, where relevant, is a pink dotted, finite line. Fibonacci goals, it is prudent to suggest, are nothing more than mere fractally evident and therefore statistically likely levels that the market will go to. Having said that, the market will always do what it wants and always has a mind of its own. Therefore, none of this is financial advice, so do your own research and rely only on your own analysis. Trading is a true one man sport. Good luck out there and stay safe.
NYSE:WFCShort
by Rykin_Capital