BAC has formed double top at a major resistance level of 10.00. Should try and get back to its 9.00-9.60 trading range after false breakout. This is a high probability 1:1 risk/reward trade to EMA 20 which should work out by the end of the week.
BAC is stuck in trading range between 9.00 and 9.6 recently. Currently it's at the bottom of trading range forming a double bottom flag and is currently aiming towards top - should trigger above 9.27 for confirmation. Risk:reward for this trade is 1:1.5 as quick scalp-type trades work better with trading ranges.
Entry - $9.40 - $9.50
Target 1 - $8.90 (Recent trough could prove to be support)
Target 2 - $8.25 (Breakout point could prove to be support)
Stop Loss - $9.70
Double bottom formed May - September
Higher volume on first bottom
Lower volume on second bottom
Price action broke out on high volume and stopped right at the measured move for the double bottom forming...
A classic 3-push wedge set up in BAC after three exhaustion bull bars + a measured move from 6.90 to 8.40 has worked pretty well...
If triggers below 9.45 - I would expect at least two legs down to MA.
Stops around 9.65, targeting at least 9
Sounds crazy, but I believe BAC has already bottomed and ready to go up again. Historically, the buy volume at this price level is pretty high. The price is currently above it's 10 month EMA. I have no stop , or specific target for the trade, but will review once resistance is hit around $9.41. Will manage trade on a monthly basis.
