Wells Fargo & Company : The bears are taking over

07/08/2020 | 04:22am EST

Nicolas Aleksy

short sell Stop-loss triggered

Entry price : 24.44$ | Target : 20$ | Stop-loss : 29$ | Potential : 18.17%

The declining trend in the stock price that has been seen for a number of trading sessions, should not be expected to reach a turning point over the coming days. Investors should open a short trade and target the $ 20.

Strengths

• The share is getting closer to its long-term support in weekly data, at USD 23.36, which offers good timing for buyers.
• Share prices are approaching a strong support area in daily data, which offers good timing for investors.
• The company returns high margins, thereby supporting business profitability.
• This company will be of major interest to investors in search of a high dividend stock.
• The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.

Weaknesses

• As estimated by analysts, this group is among those businesses with the lowest growth prospects.
• The company's earnings releases usually do not meet expectations.
• For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
• For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
• For the past seven days, analysts have been lowering their EPS expectations for the company.
• For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
• For the past year, analysts have significantly revised downwards their profit estimates.
• The technical configuration over the long term remains negative on the weekly chart below the resistance level at 34.88 USD

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