Bank of AmericaLong
BAC NEEDS A SMALL PULLBACK BEFORE EXPLODING?
BAC has an interesting chart structure at the moment. There is a fresh weekly low on the RSI in March of 2020. From that low, there is a very clean five wave movement to the upside that terminates around 49.50. Following the 49.50 top, we get a meaningful pullback that resets the RSI at around a price point of 25. Based on the RSI and clean structure, we are treating these two larget degree movements as a wave 1 and 2. That said, it appears that wave 1 of 3 just completed and rejected the .50 extension, which is a common target for such. Going forward, we would expect a shallow pullback that targets the .382 extension. From there, we would expect the larget degree wave three to really get going to the upside and volume to take over.
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