BAC has a lot of bullish sentiment and indication that it may diverge from the now forming bearish rising wedge. Price has just broke the middle band of the Bollinger Bands and may be on the way to walk the outer band located at $25.08. There is still a lot of room left for daily volatility at the top of the wedge, $.44. This is just about in line with the expected move for the week and BAC is only reading an Implied Volatility of around 20%. The Stochastics Indicator is sped up and already overbought however this may remain overextended as the bullish trend continues to rally. The MACD is also sped up and has signaled a bullish crossover with both it's histogram and crossover lines. The consensus here is we have three major bullish indications supporting a continuation to the upside, the MACD indicator, the Bollinger Bands indicator, and the Expected Move in range with the days volatility and the capacity of the rising wedge. I expect price to be trading around $25.08 for Thursday and Friday. A signal to stop out would be any bearish close outside of the Wedge Pattern.
Note
Failed IdeaNote
Trade Idea VOIDED on 7.27.17
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.