Dario1987
Short

Bank of America Short signal

NYSE:BAC   BANK OF AMERICA CORPORATION
Triangle has been completed for BAC since the beginning of the year. Price broke MA 200 which has represented a prominent support so far. MA 50 and MA 200 are close to each other. MA 20 broken with volatility stop on negative configuration. Due to the restricted volatility accrued since the beginning of the year strong price movement will be expected!
Trade closed: stop reached: Stop loss hitten after earnings release. Quite an hard trade to be honest. Now price has broken the upper trendline, hence a new possibility for long positions. Test of MA 200 test and MA 50 positive
I personally think that it is an elliot triangle. This is a continuation of the bulli;sh move. Elliot triangles usually on the fourth wave actually break the trend and give a false sign before breaking out to continue the trend. Just my opinion. Especailly considering BAC hasnumber 1-4 most call volume on the market and on thursday they will be announcing dividend increases and buy backs
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Dario1987 anal-y-sis
@anal-y-sis, I am sure that over the long term trend is bullish but in the past weeks I haven't seen too much momentum to break out the triangole on the upside. On top of that price has not reach the 200 MA but still under. It seems what happend for EUR/USD a month ago where there was a congestion with a triangle shape. It might be a continuation of the bullish trend but in the last two session price has closed on a level (<29 dollars) never seen since december. My SL is just over MA 200, hence risk reward is nice at the moment. Next sessions will either confirm it or not let's keep updated ;)
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anal-y-sis Dario1987
@Dario198 Today, post buyback and dividend announcement BAC will gap up and will close as a bullish engulfing candle.
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Dario1987 anal-y-sis
@anal-y-sis, Dear friend, as far as the price does not close over MA 200 with momentum on a dialy basis signal is in bearish mode. Triangle has been broken and the candle of yesterday did not even touch the MA 200 at 29,31 dollars roughly. You can see it as you wish but I analyse what I see. On top of that note that the triangle support has been broken and rebound with high volume did not happened. I might be wrong for sure but today as well as yesterday, risk reward is on my side. Hope is not part of my trading method.When I see signal of inversion I will turn up my mind but today this is what it is.
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mthompson95 Dario1987
@Dario1987, I think anal-y-sis is right. I think this is a classic " climax bottom "
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Dario1987 mthompson95
@mthompson95, market will tell us :)
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