close icon

Wells Fargo Bulls, Do Not Be Afraid

Wells Fargo & Co.(WFC) climbed to an all-time high of 58.74 in July, 2015, but it has been a rough ride for the stock ever since. On January 18th, 2016, its share price fell to as low as 46.86. And while most would try to find the reason for the sell-off in the banking company’s fundamentals, we are going to take a look at Wells Fargo’s weekly chart, in order to see where does the recent weakness fit into the bigger picture.
wells fargo 29.1.16
According to the Elliott Wave Principle, trends progress in five-wave sequences, called impulses. Every impulse consists of three smaller impulsive and two corrective waves. Waves 1, 3 and 5 within an impulse move in the direction of the larger trend, while waves 2 and 4 develop against it. Judging from the weekly chart of Wells Fargo & Co. stock, it looks like the whole recovery since March 2009 is an unfinished impulse, whose fifth wave is missing. This means that the current decline should be labeled as wave (4). Fourth waves typically retrace back to the 38.2% Fibonacci level of the third wave. If we apply this guideline to Wells Fargo stock, we would come to the conclusion that the it may fall a little further to the 45.00 area. Nevertheless, this is not the time to sell, because once wave (4) is over, the bulls should return for wave (5) and take Wells Fargo & Co. stock prices to a new all-time highs.

Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Rapid7 Doubles As Elliott Wave Setup Bears Fruit

We first wrote about Rapid7 in late-August 2019. The stock was hovering above $55.50, but the structure of the post-2016 uptrend suggested a notable decline was in progress. In March 2020, it fell to $31.34, down 52.5% from its all-time high. A month later, with RPD still below $47, we shared our bullish stance on…

Read More »

PNC Financial – Elliott Wave Analysis Works Yet Again

Earnings at PNC Financial suffered last year along with the entire financial sector. Net income before extraordinary items came in at $2.95B in 2020, down from $5.35 in 2019 for a 45% reduction. In our opinion, amid the biggest crisis since the Great Depression, the fact that PNC and its peers even managed to stay…

Read More »

Betting on 3i Stock a Year Ago Pays Off in Spades

The first time we wrote about 3i Group was in late-October 2019. The stock was hovering around 1100 pence a share following a 1000% gain in the past ten years. Needless to say, few thought a major decline was even possible. Fortunately, Elliott Wave analysis helped us see the bulls cannot be trusted. Five months…

Read More »

Ahead of Hibbett ‘s Unlikely Surge to New Records

Hibbett Sports Inc. is an American sporting goods retailer with more than 1000 stores in over 30 states. We first wrote about the company in the summer of 2017. The stock was trading below $16 a share back then, following a decline from as high as $68.31 in late-2013. At first glance Hibbett looked like…

Read More »

Walgreens Stock Confirms Downtrend is Over

Walgreens stock had been declining for over five years between 2015 and 2020. One of the largest pharmaceutical retailers in the world reached an all-time high of $97.30 in August 2015. In late-October 2020, it fell to $33.36, losing almost 66% from the record. It must have been difficult for Walgreens investors to keep a…

Read More »

Interpublic on the Verge of Doubling Amid Pandemic

We first wrote about Interpublic in March 2018. The stock had just reached $26 a share, but we thought an Elliott Wave correction can “easily erase about 50% of Interpublic ’s market capitalization.” Two years later, during the coronavirus panic in March 2020, IPG fell to $11.63, down 55% from the 2018 high. Fortunately, the…

Read More »

Expedia Acts As If Travel Restrictions Do Not Exist

We last wrote about Expedia in mid-2020. Countries around the globe had mostly closed their borders, the COVID-19 vaccine was still just a hopeful prospect and the summer travel season was practically ruined. No wonder the stock of Expedia, one of the largest travel booking companies, was down 46% from its 2017 high. Yet, during…

Read More »

More analyses