Wells Fargo & Company Stock Code WFC.NYS
Outlook
From the high of $51.43, price had declined to $47.33 two days ago. The low on that day also created a Hammer candlestick chart pattern. This could be a signal the correction of the rally from $43.34 to the high at $47.33 could have ended. This correction was halted at the Fibonacci 50% correction point of the rally from $43.34 to $47.33. As price is still above the cloud and both Conversion and Base lines have not given a bearish crossover, the bullish trend could be intact and the recent decline can be considered a correction. As long as price stays above $47.33, we believe price is likely to test the high of $51.43 and later to $52.42
Strategy
$49.01 Buy
$52.40 Price Target
$47.30 Risk Management Stop
3 weeks Trade Duration
Facebook Inc Stock Code FB.NAS
Outlook
A price decline since 25th July 2019 may has ended on 2nd Oct 2019 at $173.09. There was a Morning Doji Star candlestick pattern formed. On Friday, price moved above the candlestick pattern high, confirming the reversal in price trend. While price is still below the cloud and both Conversion and Base lines have not given a bullish signal, the candlestick pattern can be considered as an early reversal pattern. MACD has also given a bullish divergence warning, hinting of a potential low. We see a minimum price movement higher to the previous Fibonacci 50% correction point which was also the previous high at $192.92.
Strategy
$179.30 Buy
$192.40 Price Target
$172.05 Risk Management Stop
3 weeks Trade Duration
