Some investors are looking for bonds instead of the banking loans (just for a while). Bank Of America is one of them, also they're going to report on October 15th, so the market is considering a better price for buying. Keep in mind that Wall Street is looking for a target of around $34. In my case, I'd like to see a real buying opportunity below $26.
Wave structure is ready. Possible decline is coming soon. If price breaks the supports line be ready to get SHORT on 27.63 line.
The main target for me is 4th wave zone.
According to big picture this move down can be only start of future huge correction for company.
BAC short-term Elliott wave view suggests that the rally to $31.49 low ended red wave X bounce. Down from there, the decline to $30.08 low ended red wave Y & also completed blue wave (2) pullback. The internals of red wave Y unfolded as double three structure where black wave ((w)) ended at $30.62 low as zigzag structure.
Up from there, the bounce...
The yield curve is flattening in hurry with the Turkey crisis and that is baaad for US banks. JPM is reversing off the top of a well established channel with MACD confirmation. Downside target of $106 gives a potential 7% return. Do note I am not advocating a straight line decline to the bottom of the range. Moves within channels are generally ABCD formations...
BAC is testing its resistance at 31.43 (100% Fibonacci extension, 76.4% Fibonacci retracement, horizontal overlap resistance) where price could potentially drop to its support at 29.59 (61.8% Fibonacci extension, 50% Fibonacci retracement, horizontal overlap support).
Stochastic (89, 5, 3) is testing resistance at 97% where a corresponding reversal could occur. We...
So I took a position on the most recent break of the 200MA, thinking we would get a bounce. So much for that idea (still in position). However I found another reason to take a shot at entering a 2nd position in $BAC. As you can see we have support dating all the way back to end of October 2017. Take a look!!!! #GLTA
BAC (and the rest of the banking industry) has a rough few months ahead. The major institution has seen solid gains over the past year and is about to relinquish them all. The major indication this downtrend is about to pick up steam is seen as the 50 day moving average is ready to cross below the 200 day moving average, a major bearish sign known as the death...
Every time I turn on CNBC, FBN, or the like, I hear a pundit or analyst pounding the table to "buy the banks." The go on to ramble a spiel about low valuation rations (P/B, P/E, P/FCF, etc), rising rate environments, yield curve inversions, and other reasons that they should outperform the markets going forward. But who's biting?
A quick glance at the SPDR...
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!
BAC is offering up a nice R:R to the upside.
I have an alarm set above this recent consolidation. If we can break above that on the 130m chart and stay above, I'll try to use the R:R setup that I have in the screen shot.
Pick your targets (aligned on the right-hand side) based on what you like to look for in trade returns.
BAC weekly chart
Retreat can be expected up to 25.80 support
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
I'm sorry for the impaired expression..Just watch the chart, not what I write. :)
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