WFCD trade ideas
12.3.17 | WFC | Day | Andrew AponasJournal Entry: I think I may see a possible retracement from the bullish wave. A double bottom or Big W had just completed it's formation and price is now testing a supply zone which may follow up with a slight response bearish consolidating just below the zone in a downward motion. I expect price to stay pivot at support which is overlapping the 50% line. Both days traded on above average volume signaling that this may be stopping volume or the insiders are keeping the market propped up at this level prepared to move it higher. Based on both indicators I am using they are tracking bearish divergence on the upward moving channel price is trading in and has been trading in for the past few months. Thank You, God Bless.
Indicators:
RSI is tracking bearish divergence in a downward moving channel I have drawn in a pivot point right below the RSI line and expect a pivot here if price is going to go long. I also drew a trendline for a breakpoint signal in the event that price continues bearish.
OBV is also tracking bearish divergence with a possible triangle overlapping the downward moving channel. This may begin to signal a breakout as price squeezes out if the triangle pattern is proven to be true. I also have the 50EMA overlapping this indicator and the OBV is confirming to be in a period of consolidation right now as the OBV line is moving through/in the 50EMA. I am noting the OBV will be displayed in it's own picture below.
Bounce from here?If this holds on the 100MA I like this stock right here. This would make a nice double bottom at strong support if we bounce right here.
WFC Buying OpportunityFalse Break of Inside Bars. Long on the Break of the Mother Inside Bar.
NYSE:WFC
Wells long again?Not highly confidential if the pull back is done. But overall structure looks clean.
If it goes lowerIf it goes lower and breaks 52.85 it should go straight to the 100 MA on the weekly chart. I used the weekly chart because of the strong support of the 100 MA that would cause the stock to pause.
Wells Fargo - Short Term Sell OpportunityThe 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.
WellFargo Buy IdeaD1 - Range.
Ideally we want to see another push down towards the very bottom of the range creating and completing divergence
Then we want to see higher highs and/or trend line breakout to the upside to go ahead and buy.
Invalidation - Skip the setup, if price pushes higher towards the top skip the setup or If price breaks below the bottom and confirms the breakout.
WFC- Bullish (H&S Pattern)Write Covered Call:
1) Buy 100 shares/$5517.00
2) Write 25th Aug $57 call
Premium/Credit: $71 (0.71 x 100)
3) Max. return: $254 at $57 expiry
4) Always, put a stop loss: $54.50/if hit then buy & get out.
Remember: You want expires from 30 days to 60 days, ideal is 45 days (around)
*If $57.00 is not hit by 8/25/17, then write another covered call.
Testing a weekly resistance zone before earningsWFC is testing the top of a consolidation range before earnings.
WFC has been consolidating since it broke below a weekly uptrend line.
Bearish? Short as long as below 60$
Bullish? Buy the breakout?
