NEW YORK (TheStreet) -- The decline in the Standard & Poor's 500 earlier this month was a wakeup call for investors. The return of nearly half the lost value in just a span of two weeks is something to be watched carefully.
That's why it is time to look at some of the stocks that aren't as good to hold as they were before August, including some familiar names. They are nowhere near failure but if you want to invest in them it may be better to wait.
A technical study involved investor psychology, the trends in stocks and the price action. This analysis helps to decide on the stocks that are favorable for investors. Technical analysis aids in good trades and also to plan the stock execution in a better way.
Here are the stocks to avoid:
Wells Fargo (WFC) has had a definite bullish trend, but in August took a drop. Shares, at $51, are up 12% for the year to date. The technical analysis shows two high swings that have the same top level and separated by a high known as head. The close down below the top indicates a sell signal. This change in trend started when WFC underperformed during July.
Courtesy of StockCharts.com