Description
⋅ BAC is shown here on the 15 minute chart. Fundamentally, it is under pressure like
many other banks including First Republic.
On the chart, price is in a downtrend having bounced from VWAP (redline)
in confluence with the blue line of the top of the high volume area of the
volume profile. Price is underneath the blackline which is the 210 HMA.
Only shorts should be taken underneath that line.
The target is the thin red line below which is the bottom of the low volume area.
Accordingly, the thin red line is the target while the thin blue line or the
VWAP (thick red) are the stop loss levels. This is a very safe trade with
an acceptable R:R.
My put option @ $ 28.50 for expiration 5/12 gained 68% overnight.
I will ride this down and then look for the reversal trade.