Trading The Fattest Cat On The Street: Wells Fargo & Co

Wells Fargo & Co WFC has had an amazing come back from the Financial Crisis of 2007; it is now number one, with more than fifty billion separating it from the number two, JPMorgan Chase & Co. JPM. Recently, the media has started to pick up on this and the hype surrounding the name increases by the day. However, as traders all we are concerned with is should we be buying or selling the equity now. More importantly, where will Wells Fargo & Co WFC be trading a few months or even a year from now. Perhaps you missed the move WFC has had, now you are considering buying it. Well, lets look to the chart to tell us where the best place to enter this trade would be... By doing some simple trend line analysis, we can see that Wells Fargo & Co WFC has come into some major historical resistance as noted in the monthly chart above. Pretty much anyone looking at this chart would agree that this equity is extremely extended and should not be bought at current prices. In fact if Wells Fargo & Co WFC closes at or below $51.00 by the end of June, it could be considered as a potential short candidate depending on other technical factors in consideration at that time. The price level for those interested in buying and holding Wells Fargo & Co WFC for a longer term move will be $41.18. If the stock should fall into this level without any consolidation above, it will represent a natural correction level, and buying opportunity. Remember that only a few years ago this equity traded as low as $7.80, you do not want to be the one holding the bag as institutions slowly begin to take their profits.  Kiliam Lopez InTheMoneyStocks.com