DailyPlay – Wells Fargo (WFC) – October 20th, 2021

View WFC Trade

The bullish DailyPlay for Wednesday, October 20th is Wells Fargo (WFC). WFC is part of the Financial Sector (XLF) which has experienced a 9.19% rally in the last month. 

Technical View

• Breaking out above its $48.50 minor resistance and trendline suggests further upside
• Technical Score that has improved to 9 out of 10 
• 1M and 6M trends turned bullish 3 days ago. 

Fundamental View

• WFC trades near its long-term historical valuation of 13x 2022 Earnings. 
• Expecting an acceleration in revenue growth to reach 3-4%
• Non-interest income continues to grow and offset declines in NII. 

As this is a Credit Spread, look to take profits at 50% and cut losses at 100%:

• Take Profit: $0.69 Debit
• Stop Loss: $2.76 Debit

View WFC Trade