Wells Fargo: Long Trend, ready to head to 54Long to 54…. EOY I hope. Maybe January since Feb is the worst month for markets. I’ve got over 500 calls between Jan 2022 and Mar 2022 at 50 strike. Just a trend… do with it as you please.
WFC
Price action trade example..!Price action describes the characteristics of a security’s price movements. This movement is quite often analyzed with respect to price changes in the recent past. In simple terms, price action is a trading technique that allows a trader to read the market and make subjective trading decisions based on the recent and actual price movements, rather than relying solely on technical indicators.
Since it ignores the fundamental analysis factors and focuses more on recent and past price movement, the price action trading strategy is dependent on technical analysis tools.
Tools Used for Price Action Trading
Since price action trading relates to recent historical data and past price movements, all technical analysis tools like charts, trend lines, price bands, high and low swings, technical levels (of support, resistance and consolidation), etc. are taken into account as per the trader’s choice and strategy fit.
The tools and patterns observed by the trader can be simple price bars, price bands, break-outs, trend-lines, or complex combinations involving candlesticks, volatility, channels, etc.
Who Uses Price Action Trading?
Since price action trading is an approach to price predictions and speculation, it is used by retail traders, speculators, arbitrageurs and even trading firms who employ traders. It can be used on a wide range of securities including equities, bonds, forex, commodities, derivatives, etc.
Price Action Trading Steps
Most experienced traders following price action trading keep multiple options for recognizing trading patterns, entry and exit levels, stop-losses and related observations. Having just one strategy on one (or multiple) stocks may not offer sufficient trading opportunities. Most scenarios involve a two-step process:
Identifying a scenario: Like a stock price getting into a bull/bear phase, channel range, breakout, etc.
Within the scenario, identifying trading opportunities: Like once a stock is in bull run, is it likely to (a) overshoot or (b) retreat. This is a completely subjective choice and can vary from one trader to the other, even given the same identical scenario.
Now lets review my yesterday published analysis:
Wells Fargo may rebound soon!
Buy call 43, September 3, at 85-90 cents, target: 2 - 2.5, stop loss 60 cents.
Outcome of the trade: +100- 120% gain closed today!
this is the power of technical analysis and using this tool correctly
reference article:
www.investopedia.com
Trading Idea #WFC (LONG) 📈 58.50! (WellsFargo)👋 Hello Traders!
In this video, I analyzed #WFC in detail. I bring to your attention one of my orders.
📈 #WFC went down for a long time (MN1) and only in May WFC broke through the downtrend and formed a new uptrend. WFC completed the correction in June and broke through the new level 47.45. Now the WFC is going up to three levels 54.30, 58.50 and 65.35.
🎯 I recommend BuyStop 51.10 or BuyLimit 48.60 with SL ~ 42.00
✅ If you like what I do - put 👍 and subscribe ❗️
❓ I would be glad to see your comments, what do you think about this?
DISCLAIMER:
This idea is not a trade recommendation, it has an informational purpose. The trader independently analyzes and decides whether to use this information.
FXCM USBANKS Basket Hourly Rally in Longer-Term WeaknessFXCM's USBANKS basket is in the bearish area on the daily chart on the left. The basket is an equal weighting (20% each) of JPM, BAC, WFC and C. A bearish cross of the EMAs and stochastic potentially align short-term traders with the daily. If signals occur, movement of stochastic to 20 level and maintenance of that level increase the chances of a successful trade. Trend following indicators may be useful in this case as a potential exit tool. Stop above hourly high in conjunction with risk management techniques.
Alarming sign in S&P500If you sort the market based on the YTD performance Financial sector would be the front runner in 2021..!
Although big banks' stocks are traded at slightly lower prices these days, they outperform most tech stocks and major indexes in 2021..!
this could be an alarming sign for S&P 500..!
NYSE:JPM
NYSE:BAC
NYSE:WFC
NYSE:GS
NYSE:C
NYSE:AXP
a comparison between S&P 500 and banks performance in 2021:
A comparison between big banks and major indexes' performance in 2021!
Just to add the last cherry on the cake:
do not forget when I published the post about NASDAQ front runner in mid-February 2021:
All EV makers experienced a crash after that and never see the same price..!
WFC - GREAT Buy Opportunity, IF ... !!!Hello! Friends,
-This would be a great Buy Opportunity, IF NYSE:WFC breaks up the Daily Resistance line at $47.30 (with a WHOLE DAILY Candle) !!
Time or Theme?Which one is more important in investing? Theme or Time???
This question may seem ridiculous to those who benefited from Thematic investing between 2014-2020.
Investing in the Tech (growth) stocks in the past decade made many a fortune. Those who invested in EV makers in march 2020 and got out before February 2021, made a fortune equal to the past decade of those who invested in the best Tech stocks. Those who invested in biotechnology companies like Moderna or Novavax also made a fortune in a year more than those who invested in the biggest Tech companies a decade ago.
The coin has flipped since February 2021:
Let's compare big techs as the winners of the past decade with big banks which are the winners of 2021:
Tesla Best performance in companies with +100 Billion USD Market Cap: almost 2400% gain in 83 weeks. (June 2019- Jan 2021)
Tesla Worst performance in companies with +100 Billion USD Market Cap: -11.5% (YTD) (Biggest position in ARk invest ETFs)
On the other hand, big financial institutions like Wells Fargo, Goldman Sachs, Bank of America, Charles Schwab, and Morgan Stanley had a terrible performance between 2010-2020 became the champions of companies with the best performance in 2021. These 5 are among the top 10 companies with the highest performance in 2021.
Wells Fargo: was a horrible investment with a -22% performance between 2010-2020. (Warren Buffet was a major shareholder)
Wells Fargo: The second best performance in companies with +100 Billion USD Market Cap in 2021: +63% gain in the last 5 months.
(Warren Buffet closed his position in Wells Fargo after 30 years before this happened)
Lessons to learn:
1- Timing in investing is a more important factor than Theme..!
2- Hot growth stocks will not stay hot forever..!
3- Even titans could make miscalculations
4- You can benefit from investing in any asset by choosing the right time to open and close the position.
5- Boring stocks can become hot in the future!
6- Money circulates in the market to find the best opportunities, Follow the money, you will never regret it.
Moshkelgosha
Best Inflation Hedge: Crypto or Banks?I like to challenge the "common wisdom of the crowds" on my channel. Today I did a side by side comparison on two asset classes that according to different wisdoms will appreciate due to inflation and rising rates. The winner Year to Date may surprise a lot of new investors.
A healthy consolidation wouldn't hurt ("Puts" season)We've been at a steady growth this past month.. not saying history repeats itself but it looks like we're due for a breather. With SPY hitting all time highs, I can see us testing the 42 level mid May.
option vs stock trading???-2.2% may seem nothing to you, but it could generate +100% gains in less than 24 hrs trade.
don't believe it?
check the related link for evidence! Yesterday I published a private Idea when WFC was above 44, today it closed with+100-150% in the first few minutes of the market!
Banks are Notorious for Pop and Fades... + The Q Wasn't Great
#SellTheNews is my opinion only.
+ I see no major opening call positions. Meaning most are just closing out any calls they had and moving on...
Stormy days ahead for BanksAs you see in the charts, stocks tend to move in clusters!
Bank of America, Wells Fargo, JP Morgan Chase, and KBE(bank ETF) all have made the same price pattern..!
all shows stormy Days coming, if you have banks' stocks, maybe it could be a good time to trim your position..!
Updated Target for WFC
I always try to present the charts in a simple comprehensive format to prevent any confusion.
This is just my technical view, neither a fundamental comment nor a recommendation to trade..!
Please review my track record and calculate the odds for yourself..!
You’re likes and comments encourage me to continue this.
Stay tuned great live stream and quality content videos coming soon..!
Buying WFC 19 MAR 21 42 CALLI'd like to see price hold this current support level on the 4H.
If price moves and closes lower than $35.80, then I will be closing these contracts for a loss.
Why did I choose $42 as a profit target? Because if you zoom out on the 4H chart, you will see a price level that was created between 28 FEB and 5 MAR 2020. I believe price could reach the peak of that price level by expiration.
Cup and Handle the easy money maker..!Potential gain:+35%
Reward/Risk:+3
Timeframe: 4-24 wks
I always try to present the charts in a simple comprehensive format to prevent any confusion.
This is just my technical view, neither a fundamental comment,nor a recommendation to trade..!
Please review my track record and calculate the odds for yourself..!
You’re likes and comments encourage me to continue this.
Stay tuned great live stream and quality content videos coming soon..!
*call options could also be rewarding!
WFC - Long Setup I purchased this today. Looks good. I bought for $39.56 , stop 37.93, target 47.87.
WFC POST COVIDLong term analysis moving forward we have a big level here at the 120EMA being tested today. If this financial market boom continues, we should expect WFC to get back to PRE COVID levels around $ 45.00
Watch this chart closely for a break above this EMA - Anything below this EMA has always been a dip buy! You can see it took a long time during COVID for this to be dip bought back to the 120EMA on the weekly!
