BAC looks to be riding Wave 3 Impulse with Extension right into strong Resistance. Could be a perfect spot for some consolidation into wave 4 before wave 5 looks to test the resistance. Conversely we could see a push through the resistance and then wave 4 will form and bounce off of the new support. Looking at wave 3 being an extension wave it is at it's 5th point...
HOLD is the wisest option.
Based on technical Analysis there might be a slightly possibility that the prices might start going up as the Resistance of 25.5USD was broken, but the prices are still moving in sideways trend and the best option is to hold.
BAC direction lines trend up while WFC lines trend down.
The swing (purple) lines of WFC are low indicating a temporarily the price is oversold (on the short, one-bar timeframe).
Conclusion: This is a hedged trade, go long with BAC and short with WFC.
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I think that the BAC weight can be increased by putting stop-loss in the portfolio.
Valuable Risk / Reward Ratio Target : 27.24
Take Profit Points
Stop-Loss : 23.91 or Close Under 23.91
Subsequent to 23.03 causes zone changes.
Potential support and resistance levels. BAC is firing long on the weekly chart. I'm not sure about the state of the markets today considering JPOW's words seem to be foreboding of turmoil in the near term. Interested in seeing how this plays out.
The financials have been laggards on the last leg higher in the S&P but we found a good recent entry point in BAC at $23 using the Extreme Turn (the "Money Point" indicator among friends).
Signal expressed as Aug 25C for .65 and then spread today when the sell signal printed at 24.42. Holding the rest for gap fill above $25. We'd like to see price hold the...
SPY closed up 0.92% yesterday.
With no conviction.
SPY up bias but bulls resolve wanting.
SPOOS are giving up most of yesterday's gain, down -21 handles as of now.
Banks (BAC, MS) earnings reaction is indicated negative pre-open.
Weak XLF sure to pressure SPY to the down side in the early going.
Like the airline stocks, big banks have all formed similar patterns leading into Monday. Funding seems to have shifted to the banks and airlines. Many banks will be reporting earnings this coming week, including JPM, WFC, Citi (not shown) on Tues. 7/14, USB and GS Wed. 7/15, and BAC, MS, and First National Bank (not shown) Thurs. 7/16.
Earnings again this week. Clearly everyone is going to be making puts so I suggest calls. I am joking please don't. So it's looking like it broke out of the first downtrend channel, went into another little sell-off, and then moved back out of the downtrend on Friday. Volume wasn't high so no indications of a bullish move. Looking at Monday for the next candle....