It was a great day for longs, BAC finally broke out of the overhead resistance. It also came on heavier volume giving some credibility to the move. It's a too bad that the market as a whole has tempered it just a little bit...and technically continues to be on shaky ground. This is going to be the concern for the time being. Otherwise, today offered a great entry point because the upside target for now is $15 and your stop loss can be set just below the two price peaks near $12.50...but that's just my thoughts. You could tighten it up if you aren't afraid of volatility stopping you out. There's also 3 support levels surrounding which gives a nice backstop. I've put all the charts and details on Stockineer, but there's a bigger audience here so I'm sharing the summary to hopefully give some guidance. Good work guys and good luck.
The report today is not that positive...The major support of the 10-month trendline had broken after earnings. The next level of defense is $11, which is quite strong but if it breaks a head and shoulders top will be confirmed which predicts a move to $9. Certainly $10 is in the mix and should offer good support. Good luck guys, updated charts and discussion is on Stockineer.
It's been a rough day. BAC price fell directly to it's support level today. This is a pretty major level and it's important that it hold. It presents a great buying opportunity because if it breaks low, it becomes a sell...since it's walking a tightrope, the downside risk is very low. $11.72 is also a key level that held today which is good news. The financial sector as a whole also dropped to it's support level and closed there. It's always interesting how these things seem to work in unison. I put an updated chart up on Stockineer to show what I'm talking about.
After the breakout, it's been nothing but low volume moves lower. The price has not been supported as hoped, but we only need one to hold. It held multiple times today and the price headed north at the end of the day so let's hope the volume picks up and we start going on again. Charts and summary are posted if you're interested.
Taking a closer look at the pattern...it's actually an inverse head and shoulders, so that's pretty exciting. It predicts a minimum move to just above $15. I couldn't resist and added a few more shares today because the price is sitting right on two support levels and there's another just below. Let's hope the down market doesn't ruin this trade.