$WFC with a bullish outlook following its earnings #StocksThe PEAD projected a bullish outlook for NYSE:WFC after a positive under reaction following its earnings release placing the stock in drift A with an expected accuracy of 80%.
WFC trade ideas
WFC Wells Fargo & Company Options Ahead of EarningsIf you haven`t bought the dip on WFC:
Now analyzing the options chain and the chart patterns of WFC Wells Fargo & Company prior to the earnings report this week,
I would consider purchasing the 51usd strike price Puts with
an expiration date of 2024-11-1,
for a premium of approximately $0.24.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Wells Fargo Reports Earnings Next Week. What Do Its Charts Say?Wells Fargo NYSE:WFC and other big banks will release third-quarter earnings next Friday (Oct. 12) in what’s often referred to as the unofficial start of earnings season. WFC has trailed the S&P 500 year to date, but what might technical and fundamental analysis tell us could happen next for the stock?
Let’s check it out:
Wells Fargo’s Fundamental Analysis
Wells Fargo currently trades at less than 11 times forward earnings, or about the same valuation as Citigroup NYSE:C but a notch less than both JPMorgan Chase NYSE:JPM and Bank of America $NYSE:BAC. (Those banks were trading at about 12x forward earnings as I write this.)
For next week’s earnings report, the Street is looking for Wells Fargo to report $1.27 in earnings per share on $20.4 billion in revenue. That would be down from $1.39 EPS on $20.9 billion in revenue for the same quarter last year.
In fact, the S&P 500’s financial sector as a whole isn’t expected to post a very good quarter due to challenges in creating net interest income. FactSet expects the sector to post 0.1% in overall year-on-year earnings growth on 4% revenue gains.
That’s weaker than the 4.6% earnings growth and 4.7% revenue gains that FactSet projects for the S&P 500 as a whole. So, big banks are probably looking at some margin compression.
Meanwhile, Wells Fargo has been moving on from a 2016 scandal that saw the bank try to plump up its business by opening new savings, checking and credit-card accounts for millions of people who hadn’t asked for them.
The scandal prompted then-CEO John Stumpf to eventually resign, and the bank paid massive fines and lawsuit settlements.
However, WFC has avoided such scandals since current CEO Charlie Scharf took over in 2019. Instead, it’s been methodically taking steps to show regulators that it’s now worthy of being treated as something other than the banking sector’s pariah.
WFC recently submitted a third-party review of its risk and control overhauls to the Federal Reserve in an effort to remove a $1.95 trillion asset cap that regulators imposed on the bank in 2018.
Separately, Wells Fargo has made a series of senior-level hires the past couple of years to expand its investment-banking business, which has long been a weakness for WFC relative to other money-center banks. So, there’s an ongoing effort to capture market share in a business that really wasn’t contributing to Wells Fargo’s results.
Wells Fargo’s Technical Analysis
Now let’s go to WFC’s charts, beginning with a look going back to mid-2023 and running through midday Tuesday (Oct. 2):
Readers will see that WFC rallied from October 2023 into early May 2024. On the way down, the stock found temporary support at its 23.6% Fibonacci retracement level in June/July 2024, as denoted by the second-from-the-top black line above.
Wells Fargo also saw support at 38.2% Fibonacci retracement level (the third black line from the top) for one day in early August 2024. It also received support at the 50% Fibonacci retracement (the fourth black in from the top) in both early August and again in mid-September.
This created a so-called “double bottom” pattern within what’s known as a “falling wedge.” Both of these are historically patterns of bullish reversal.
Now let me erase the Fibonacci model so I can show you exactly what I mean:
In this chart, readers can see the falling-wedge pattern drawn with light-blue lines and the double-bottom pattern (with a $59 pivot) denoted with a purple line.
The stock is sitting on two positive technical patterns going into a known earnings date that could act as a potential catalyst.
Meanwhile, WFC’s Relative Strength Index (the gray line at the chart’s top) is very close to neutral, so that does not tell us much.
However, look at Wells Fargo’s Daily Moving Average Convergence Divergence (MACD), as denoted by the black and gold lines and the blue bars at the chart’s bottom.
All three components were negative as recently Sept. 18, which traditionally isn’t a bullish sign.
That said, the histogram of Wells Fargo’s 9-Day Exponential Moving Average (or “EMA,” denoted with the blue bars above) was in positive territory as of Tuesday. The 12-Day EMA (the black line above) has also moved above the 26-Day EMA (the gold line), which is also typically a positive development.
That 12-Day EMA is already above zero, but the 26-Day EMA is dragging below zero at this point. But if the 26-day EMA can move into positive territory without overtaking the 12-Day EMA and the 9-Day EMA remains positive, that would historically be a bullish set-up.
(Disclosure: Moomoo Markets Commentator Stephen “Sarge” Guilfoyle was long WFC as of the time of writing this column.)
This article discusses technical analysis, other approaches, including fundamental analysis, may offer very different views. The examples provided are for illustrative purposes only and are not intended to be reflective of the results you can expect to achieve. Specific security charts used are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. Moomoo and its affiliates make no representation or warranty as to the article's adequacy, completeness, accuracy or timeliness for any particular purpose of the above content. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct. Moomoo is a financial information and trading app offered by Moomoo Technologies Inc. In the U.S., investment products and services on Moomoo are offered by Moomoo Financial Inc., Member FINRA/SIPC.
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WFC - Wells Fargo ABOVE 200SMA & 200EMANYSE:WFC crossed both 200EMA and 200SMA.
ROC and RSI are confirming the direction of the price.
However, DMI+ is still below DMI-, DMI- couldn't keep the strength to keep the negative direction and so it's losing strength with ADX changing direction close to DMI+. With the DMI+ already crossing DMI- in the 4hours time.
Volume it's increasing together with the price, highlighting the increase in demand
Forming a nice double bottom on WFC! 🔉Sound on!🔉
Thank you as always for watching my videos. I hope that you learned something very educational! Please feel free to like, share, and comment on this post. Remember only risk what you are willing to lose. Trading is very risky but it can change your life!
Descending Broadening Wedge in WFCWhen price touches the bottom trend-line and begins rising, buy. Price may breakout on the following trip across the chart pattern.
In case of upward breakout, look for a target of around $62, which is the highest peak.
WFC (Wells Fargo & Company ) SELL TF M30 TP = 52.95On the M30 chart the trend started on Sept. 4 (linear regression channel).
There is a high probability of profit taking. Possible take profit level is 52.95
Using a trailing stop is also a good idea!
Please leave your feedback, your opinion. I am very interested in it. Thank you!
Good luck!
Regards, WeBelievelnTrading
30% collapse by Wealth Fargo (WFC)Wells Fargo (WFC) recently tested and briefly exceeded the key psychological resistance at $60. However, this move above $60 was short-lived, followed by a strong downside wave accompanied by significant selling volume. This price action could be an early indication of potential weakness.
Additionally, a bearish divergence has formed on the CCI oscillator, further supporting the idea of a possible trend reversal. Given these signals, WFC is presenting a solid risk-reward short opportunity that seems worth considering. Keep a close eye on this setup as it develops!
$WFC Bearish SqueezeBearish Divergence: Bearish divergence occurs when the price of an asset is making a higher high, but the technical indicator is making a lower high. This suggests that the momentum behind the uptrend is weakening, and the price may be about to reverse and start a downtrend. Bearish divergence is typically seen as a sell signal by traders and investors.
If you look at NYSE:WFC it is increasing in price with momentum decreasing. It is also near is resistance level and only novice traders buy near its highs! Whats your thoughts on NYSE:WFC
WFC, dip then recover, or a breakdown?Wells Fargo (WFC) is currently in a consolidation phase near the lower end of its range dating back to March 2024. The stock's price has faced some challenges recently, including a notable drop of 6.02% on July 12, 2024. Despite these setbacks, the company's earnings and financial health remain solid, benefiting from higher interest rates. However, there is an expectation of potential rate cuts by the Fed in September, which could influence sector rotation away from banks to areas like energy and infrastructure. Monitoring how WFC performs around the $54 level could provide insights into future movements.
WFC Wells Fargo & Company Options Ahead of EarningsIF you haven`t bought the dip on WFC:
Now analyzing the options chain and the chart patterns of WFC Wells Fargo & Company prior to the earnings report this week,
I would consider purchasing the 65usd strike price Calls with
an expiration date of 2025-1-17,
for a premium of approximately $2.58.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Bollinger Bands - How to interpret Bollinger BandsBollinger Bands is a extremely functional indicator. Nothing fancy, simple interpretation and if you couple it with a momentum indicator even better. Points to remember, band get tight then breaks out, when price breaks out of upper or lower band signals reversal, and price above/below bollinger MA represents price is becoming over bought/oversold.
Bullish potential detected for WFCNYSE:WFC represents a potential bullish opportunity should momentum continue and newer highs be made.
Entry condition:
(i) breach of the upper confines of the Darvas box formation - i.e.: above high of $61.76 of 23rd April.
Stop loss for the trade (based upon the Darvas box formation) would be:
(i) below the support level from the low of 3rd May (i.e.: below $59.12) - most conservative exit, or
(ii) below congestion area composed of volume profile zone and rising 10 day moving average (i.e.: below $60 area).
Wells Fargo Ventures into Crypto with Bitcoin ETF StakesWells Fargo ( NYSE:WFC ), a prominent US banking institution, has disclosed its involvement in cryptocurrencies through investments in Bitcoin exchange-traded funds (ETFs). The disclosure was made in a regulatory filing submitted to the U.S. Securities and Exchange Commission (SEC). Wells Fargo has purchased shares of Grayscale's GBTC spot Bitcoin ETF, providing exposure to the digital asset. The bank also invested in ProShares Bitcoin Strategy ETF (BITO), offering investors exposure to Bitcoin futures contracts.
However, Wells Fargo's ( NYSE:WFC ) investments in these crypto-related vehicles are relatively small. The filing reveals that Wells Fargo's holdings in GBTC amount to $141,817, while its investment in ProShares is less than $1,200. The bank also has a $99 exposure to Bitcoin Depot Inc., a Bitcoin ATM provider. This move follows reports in February suggesting that the bank, along with Merrill, was offering wealth management clients the opportunity to invest in Bitcoin ETFs through brokerage accounts.
Wells Fargo invests in Grayscale spot Bitcoin ETFWells Fargo ( NYSE:WFC ), one of the largest U.S. banks, has invested in Grayscale's spot Bitcoin ETF offering. The company owns 37 ProShares Bitcoin Strategy ETF shares, 2,245 shares of the Grayscale Bitcoin Trust converted into an ETF, and 52 Bitcoin Depot shares on its balance sheet. The total cost of the Bitcoin investment was over $143,000.
The SEC cautioned that the information provided by a financial firm should not be assumed to be accurate and complete. In February, Merrill Lynch's investment division and Wells Fargo's asset management division began offering some clients access to ETFs based on BTC, but clients must have brokerage accounts and request a Bitcoin ETF separately.
Wells Fargo ( NYSE:WFC ) confirmed that spot Bitcoin ETFs are available for purchase upon regulatory approval through Wells Fargo Advisors or Wellstrade Bank's online platform. UBS Group AG also selectively offers SEC-approved spot Bitcoin ETFs to certain asset management clients with brokerage accounts.
WFC 5/13/2023WFC
WFC looking more like KFC to the bears.
If you look at many of our banks and their stock charts, they have doe nothing but move sideways since the crash of ‘07-’09. Now about 15 years later, it looks like its time for the bears to finish off most of these banks and what we’ve known as our banking system.
Was it a coincidence that Bitcoin was created 2008 mid-way thru the last collapse? Time to start putting one and two together.
Daily chart analysis
WTC was comfortably moving sideways between 44.50 - 58.60 between 2015-2020.
Covid happened and price was shot all the way down to major support level at 23.70.
A ton of fake money was printed during Covid and that helped price shoot back up and back into the previous range.
After price reached the highs of 58.60, it was shot down and was unable to hold support level of 44.50.
As price fell below support, it pulled back inform of a bear flag.
Price has since broken down from bear flag resistance level. The bear flag was confirmed, and price is looks to enter downtrend. Price also pulled back to turn previous support into resistance. This is my cue to enter trade short.
Entering trade short.
Entry: 37.49
Stoploss: 43.40 (-15.76%)
Target: 23.70 (+36.78%), 2.33 RR Ratio
WFC Wells Fargo & Company Options Ahead of EarningsIf you haven`t bought the dip on WFC:
Then analyzing the options chain and the chart patterns of WFC Wells Fargo & Company prior to the earnings report this week,
I would consider purchasing the 60usd strike price Calls with
an expiration date of 2025-1-17,
for a premium of approximately $4.85.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Wells Fargo Set to Integrate AI into Trade Finance Operations Wells Fargo ( NYSE:WFC ), one of the largest banks in the United States with $1.9 trillion in assets, has partnered with TradeSun to integrate artificial intelligence (AI) into its trade finance operations. The bank will use TradeSun Intelligence V4, an AI platform that digitizes and optimizes trade finance and compliance processes. The solution is designed to mitigate risks in trade finance operations, while also applying AI technology to harvest, verify, and classify unstructured data to aid compliance and document validation requirements.
According to Cesar Gonzalez, Head of Commercial Banking Operations at Wells Fargo ( NYSE:WFC ), the bank has made "significant progress" in digitizing its trade finance and receivables processes, and partnering with TradeSun will help it "strengthen our risk framework." Kiran Vuppu, Head of Wells Fargo's Commercial Banking Client Insights and Commercial Lending Product Management Group, said that the bank is presently streamlining its product offerings "across all channels," and that its use of AI technology through TradeSun is "a key part of that strategy."
Wells Fargo ( NYSE:WFC ) has been actively pursuing digital solutions to right-size its operations and improve its product offerings. In 2022, the bank delivered its Fargo virtual assistant through a partnership with Google Cloud, and launched its Vantage digital business banking platform, which also incorporates AI technology. These were followed by the release of LifeSync, Wells Fargo's financial planning platform, in February of last year.
🏦💼 Wells Fargo (WFC) Analysis 💼🏦📈 Current Status:
Challenges Addressed: NYSE:WFC is tackling challenges through strategic measures and regulatory compliance.
Diversified Segments: Despite a rising net charge-off ratio, diversified business segments are expected to mitigate adverse impacts.
Financial Health: WFC's Tier 1 capital ratio exceeds regulatory requirements, showcasing its financial stability.
Regulatory Compliance: Proactive regulatory compliance, including adherence to Basel III standards, enhances stability and investor confidence.
Dividend Raise: A recent dividend raise post-successful stress tests by the Federal Reserve underscores WFC's commitment to shareholders.
💡 Outlook:
Bullish Sentiment: A bullish outlook is warranted for WFC, particularly above the $49.00-$50.00 range.
Upside Target: The upside target is set at $75.00-$77.00, reflecting potential appreciation as WFC strengthens its position in the financial sector.
📊 Investment Strategy:
Entry: Consider entry above $49.00-$50.00, aligning with the bullish sentiment.
Targets: Aim for profits at the identified upside target levels.
Risk Management: Monitor regulatory developments and financial indicators closely to manage risks effectively.
🚀 Note: Stay informed about regulatory changes and market dynamics to optimize investment decisions! #WellsFargo #FinancialSector #BullishAnalysis 🌟📈
Wells Fargo Quietly Breaks OutStocks inched lower yesterday, but not Wells Fargo.
The first pattern on today’s chart is $58. WFC was trapped below that level since March 12, but closed above it on Thursday and reached its highest level in over two years. That may suggest the bank stock is breaking out.
Second, Bollinger Band Width highlights the narrow consolidation since early April. Will that price compression give way to price expansion?
Third, WFC is back above its 21-day exponential moving average. Traders could view that as evidence of a bullish trend. MACD is also trying to turn higher.
Finally, there have been some positive news events. The Office of the Comptroller of the Currency (OCC) terminated a cease-and-desist order on February 15 and earnings beat estimates on April 12. (The stock initially dropped but advanced this week.)
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wfc-weekly 26 ema pointing upwards. long trades recommended.
-long 15 consolidation zone with a breakout.
Entry given by a confirmative pullback into the zone with a strong bull candle or a bullish pattern formation.
0.63 spread on my provider.
Stop below the pullback low.
Profit Targets on following reference points.
The position here is indicative.
Wells Fargo Faces Profit Dip Amid Net Interest Income DeclineWells Fargo ( NYSE:WFC ), a key player in the banking sector, recently reported a slight dip in first-quarter profit, raising concerns about the bank's performance and its strategies moving forward.
Despite a slight increase in revenue compared to the previous year, the bank witnessed a 7% decline in first-quarter profit. This decline was primarily attributed to a notable 8% drop in net interest income, a critical metric for assessing lending profitability.
Chief Executive Officer Charlie Scharf highlighted the bank's ongoing investments across various business segments, which contributed to higher revenue. However, these gains were overshadowed by the impact of high-interest rates on funding costs and a shift in customer preferences towards higher-yielding products. Additionally, lower loan balances further exacerbated the decline in net interest income.
Non-interest income, on the other hand, saw a promising 17% rise in the first quarter, driven by factors such as higher investment banking fees and increased trading revenue. This surge in non-interest income partially offset the decline in net interest income, showcasing the bank's diversified revenue streams.
Wells Fargo's ( NYSE:WFC ) adherence to its projection of a 7%-9% decline in net interest income for the year reflects a cautious outlook amidst evolving market dynamics. Regulatory developments, including the recent closure of a 2016 consent order, underscore the bank's commitment to enhancing its risk management practices and rebuilding customer trust.
Despite these challenges, Wells Fargo's ( NYSE:WFC ) shares have demonstrated resilience, gaining over 40% in the past 12 months. However, the bank remains vigilant in addressing ongoing risks and challenges while capitalizing on emerging opportunities in the banking landscape.
As Wells Fargo ( NYSE:WFC ) navigates through a dynamic financial landscape, investors and stakeholders closely monitor its strategic initiatives and performance metrics, anticipating the bank's ability to adapt and thrive in an evolving market environment.
Technical Outlook
Wells Fargo ( NYSE:WFC ) stock is trading slightly above the 200-day Moving Average (MA) with a moderate Relative Strength Index (RSI) of 50.56 indicating equilibrium between buyers and sellers. The 4-month price chart indicates a "Doji" candle stick pattern meaning no clear cut as to where the stock is heading too.
day trade wfc looking at a down move for wfc as it brakes key support and testing key trendline earnings report today
