Possible Head and Shoulders pattern forming on
WFC
though too early to tell. The biggest test will be the trend line (black). If the stock breaks down expect a retest of the trendline before finally completing the H&S pattern. Based on how long the stock has adhered to the black trendline a break down would be a long-term bearish signal.
Note where the entry point is. Make sure the H&S is complete before entering. The unfilled gap is still lingering.
The two targets on the chart are past points of resistance and good places to take some profits.
WFC
though too early to tell. The biggest test will be the trend line (black). If the stock breaks down expect a retest of the trendline before finally completing the H&S pattern. Based on how long the stock has adhered to the black trendline a break down would be a long-term bearish signal. Note where the entry point is. Make sure the H&S is complete before entering. The unfilled gap is still lingering.
The two targets on the chart are past points of resistance and good places to take some profits.
Comment:
Target 1 has been hit and WFC has retraced back to trend line.. Expect further carnage on the back of the Fed.
