BAC
Bank Of America | Multi Year OutlookHello Traders,
I have decided to expand my technical analysis to stocks and take a much longer outlook in the stock market. These charts would be great for a long term investor.
As of 01-17-217 I expect this stock to visit the 10.99 level defined to complete the Geo' it has created in within the skinny blue lines. I have also defined an engulfing (and potential) Geo' that I expect to come to fruition with the current price action.
The dashed arrows are there to act as a guide for what will happen to price as we move forward with this stock.
Although it may take several year, I expect BAC to hit its highest possible target of 65.28.
More updates to come along as this continues to develop.
Best,
Chartistry
More upside potential towards earnings...butBAC monthly chart analysis shows two things:
1) The post elections rally drove Bank of America above a major weekly structure zone (18$) that now should act as support (green box)
2) Next major structure zone is way up near 25$. Also where the price will meet the 200 months MA line and complete a bearish AB=CD pattern.
We are talking about a 10% additional rally in a stock that already doubled itself since 2015.
Will we see another push higher without any pullback?
Earnings are scheduled this week. The bearish scenario (short term pullback) involves a weekly Pinbar pattern. The bulls can either wait for the pullback to create better opportunities or bet blindly on the bullish sentiment that continues to dominate the market.
RSI and Stochastic are overbought but no Sell Signal provided yet..
Read more about BAC, JPM, XLF and DXY in this week's newsletter
BAC next stop 23.45?Since we keep moving higher I identified a flag pattern on the daily and 4H chart. Now we are breaking out of it and the next move should be equal to the flag pole which ends at 23.45. Personally I don't trade that kind of pattern but maybe someone of you guys out there is looking for some short to medium term targets to take profits. I am still looking for 27.50 longterm though (see previous post)
WFC: Buy gradually over a weekWFC gave a nice signal to go long here, when retesting the prolongation of the earnings support to the left (dashed line). I'm adding gradually over a week in this zone. I currently hold a 1.5% account position, since I think we might take a while to take off, but we will most likely see a continuation of the Trump induced rally, and as Tim West pointed out in the Key Hidden Levels chatroom, it has a lot of room to catch up to $BAC, so, don't miss it.
Good luck,
Ivan Labrie.
BAC time to take some profits or exit or hold?So we finally broke out to multi-year highs. Now what?
In the short-term, some critical points on the chart suggest to take some profit:
- If we take an equal-measured move from the yearly lows at 10.99 to the August highs and copy that move from September lows we can see that we end up right where we are now (20.08, see orange lines).
- If we measure a fib inversion from Nov 2015 highs to the 2016 lows, we get a 127.2% extension which aligns well with where we are now (20.02).
- Weekly RSI violently overbought at 91.63 (!!!)
So I exited some of my positions which I partially will rebuild if we get a retracement into the 15s. Should this break-out continue to go higher, I will gladly sell my core position at the next weekly resistance level around 27.50
I Am Shorting: $BAC As It Nears 7 Year High PivotShares of Bank of America Corp (NYSE:BAC) are less than 5% away from their 7 year highs and I am going to short. The reasoning is simple. As Bank of America currently trades at $19.02, the high from April 2012 is $20.00. It is likely that as early as today the stock will tag that double top pivot. Being the highest level since the financial crisis, investors will likely sell it. I plan to take advantage of it and short the stock. This is a high reward, low risk trade with a pull back likely to $17.85.
Follow my verified trading performance and view my history of trades here: verifiedinvesting.com
BAC: Massive cluster of earning levels aboveThe short term chart shows very bullish signals in BAC, we can enter longs here, on dips to 15.45, and/or add on a break of 15.85. Stops for all positions should be at 14.81.
There is a giant resistance zone above, so if crossed, we can let this trade run for a good while.
Most traders are not in stocks from this sector, and it's not a good idea right now.
Good luck!
Ivan Labrie.
BAC: Potential shortWe can enter shorts in BAC at market, to diversify and avoid being 100% net long, and also, to fade this over loved and over owned stock's rally, as it moves back down to the triple key earnings support zone below.
I'd like to hold some shorts, since I expect the markets to chop sideways for the most part, and also to minimize my long exposure. This trade is fighting the recent trend and RgMov direction, so don't risk too big on it. Maximum of 0.5% is ok.
Good luck,
Ivan Labrie.
GNW bullish signals. Reversal started?GNW has had consistently bad earnings since 2014 until about Q1 of this year where the distressed financial company posted profits and shedding of toxic assets. MACD bullish divergence, Ichimoku crossed above kumo on the daily chart, we might see a turn around and long term climb to 6+. Keep in mind this is a fortune 500 company trading for $3.