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Wells Fargo & Company (NYSE: WFC) Potential breakdown of a bearish rising wedge should price fail to hold at the wedge support level.
1. The price has retested the current wedge support level, a breakdown of which will provide a bearish signal for further downside. 2. The price could continue to trade lower if a breakdown occurs to retest the support zone at US$30.90-36.40, when calculating the target area for the rising wedge breakdown by taking the height (US$9.54) and projecting onto the breakdown point at US$41.70. 3. The support zone is also confluent with a previous strong horizontal resistance level at US$31 from March to June 2020 and a 61.8% Fibonacci retracement level at US$34.70, calculated using a swing high of US$58.81 and swing low of US$19.79.
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CHART LEGEND
Red box = Resistance zone
Green box = Support zone
I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).
