Wells Fargo trade idea: How to play the long term trend accelerating higher

Introduction

VolatilityMarkets suggests top quant trade ideas to take advantage of trending markets.

Market summary

WFC last price was $ 48.13. In the short term Wells Fargo has been accelerating higher. In the long term Wells Fargo has been accelerating higher. Over the past 20 days, the WFC price increased 15 days and decreased 5 days. For every up day, there were 0.33 down days. The average return on days where the price increased is 2.0181% The average return on days where the price decreased is -3.736% Over the past 20 Days, the price has increased by 9.79% percent. Over the past 20 days, the average return per day has been 0.4895% percent. With the long term trend being the stronger of the two, we propose a long trade idea with an overnight time horizon.

The trade idea

Buy $ 47,450 USD of Wells Fargo, take profit at $ 49.1444 level with 50.0% odds for a $ 1,000 USD gain, stop out at $ 47.1157 with 50.0% odds for a $ 1,000 USD loss through O/N time horizon.

Intraday Predictions

WFC trend analysis

WFC last price was $ 48.13. The long term trend accelerating higher is stronger than the short term trend accelerating higher. This trade goes long when price has been moving higher and accelerating over the past 20 days.

WFC value analysis

Over the past 20 days, the WFC price increased 15 days and decreased 5 days. For every up day, there were 0.33 down days. The average return on days where the price increased is 2.0181% The average return on days where the price decreased is -3.736% Over the past 20 Days, the price has increased by 9.79% percent. Over the past 20 days, the average return per day has been 0.4895% percent.

WFC Worst/Best Case Scenario Analysis

Within 1 week, our worst case scenario where we are 95% certain that this level won't trade for WFC, is $ 45.1054, and the best case scenario overnight is $ 51.1546. levels outside of this range are unlikely, but still possible, to trade. We are 50% confident that $ 47.1157 could trade and that $ 49.1444 could trade. These levels are within statistical probability.

Key Takeaways:

• Price today $ 48.13.

• Over the past 20 days, the WFC price increased 15 days and decreased 5 Days.

• For every up day, there were 0.33 down days.

• The average return on days where the price increased is 2.0181%.

• The average return on days where the price decreased is -3.736%.

• Over the past 20 Days, the price has increased by 9.79% percent.

• Over the past 20 days, the average return per day has been 0.4895% percent.

• Over the past 20 days, The price has on average been accelerating: $ 0.0353 per day higher.

• Over the last session, the price increased by $ 0.79.

• Over the last session, the price increased by 1.6414 %.

• Over the last session, the price accelerated by $ 0.725.