TopOptionAlert
Oct 23, 12:58 PM
$WFC NOV20 85C · still actionable
Zone:
$82.20 to
$83.35
Invalidation: close under
$81.00
Objectives:
$84.75, then
$88.00
The math: up 2.4% to the first objective and 6.3% to the second, against 2.1% risk on the invalidation, better than 2 to 1 to the first and nearly 3 to 1 to the second.
Picture Wells Fargo as a big old riverboat that took on water this year and has been steadily bailing itself out. After a solid earnings beat it found real buyers near
$78, and now it is drifting higher with the 50 day average sitting right overhead like the first bridge it has to clear. This is a swing, plain and simple, riding the bounce back toward ground the stock gave up earlier in the year.
P.S. The 50 day average sits near
$84.80, so a close through the
$84.75 level would tell you the bounce has real legs.
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