.

Swing Trade Idea (WFC) – January 16, 2024

Our bearish trade for Tuesday, January 16th is Wells Fargo & Co. (WFC). WFC is part of the Financial Sector, which has performed at 2.70% over the last month, with WFC underperforming relative to its sector at 2% over the same period.

WFC traded into an area of resistance at $50, from where it is pulling back. It recently broke below an area of support at $47.50 which indicates that further downside can be expected. The next area of support is at $44 and then $42.

As a close, if WFC were to trade above $49 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves above $1.68