BAC trade ideas
BAC support/resistance tradeas you can see in this chart, BAC has been consolidating in that one level. if it breaks downwards, then I will be placing a put option, if it bounces off support and breaks through resistance I will be making a call option
I will be updating below on what play I will make just incase you want to enter.
stay tuned!
Short Term Swing (Manage Risk)Looks like there's some good movement in the chart and I see a good opportunity for a quick swing. Market is unpredictable so have a tight CL and don't hold for too long.
Bank of America BAC Bearish CrabBank of America (BAC)... this company is found in Warren Buffet's Portfolio and once it becomes a bargin price it will be found in mine too. I follow the advice layed out by The Oracle of Omaha. The company financials are very weak from a value investors point of view. The total revenue has been flat line at best for the past decade and when your operating income eats up 74% of your total revenue thats a problem. I always try to remember the law of depreciating return which is "you get back less than you put in." Warren Buffet always says "its easier to take 100,000 to a million than to take a billion to 100 billion. I mean the company is absoultly massive with 2 Trillion dollars in assets?!?! So, I guess the Value invstor needs to look at other things when considering Bank of America. I dont forget that major banks created these mortgage bonds back in 2008 that imploded when the real estate market crashed, so i have to dig deeper into where the assets are coming from. However their EPS has been growing at a decent rate over the past decade so thats also a plus. Their total ratio (becasue they do not report current assets and curret liabilities) is a 1.14 which if using a a current ratio thats real good (not exceptional but better than just plain "good") They are currently undervalued by the Ben Graham Formula (revised) by 61%. Which is a real good thing as well. They pay an annual dividend of 1.75%, but i am not sure if theyre an S&P aristocrat or not. Overall, based on what i have read based on Marry Buffets books and listening to videos of Warren Buffet himself i would grade BAC ( Bank of America Corp.) a C+ company which I would hold only for a few years up to 5 years max. Dont get me wrong the company is NOT going anywhere, so if youre looking to hold just to hold to sound trendy and chic amongst your friends then sure, but it is not going to be your star player, but more like your practice squad ...just a great supplemental.
the technical side is the Bearish Crab. the grey box is the PRZ with a 3.618 projection of the BC leg, a 1.618 of the XA leg and 2.0 fibo extension of the ABC legs. if youre looking for a decent bargain then wait for Price to reach the pink line which is .382 of the whole pattern and if youre looking for a great bragain then wait for the .618 of the entire pattern. Seeing how the market is flowing at the moment i would probably buy at the .382 of the retrace anything lower than that there might be mass hysteria of a market "crash" which is honestly a very much needed correction for the stock market. But a good deal is better than no deal. I dont publish often my investing ideas as my investing is vastly different than my speculation ideas.
If you guys want to know more about my investing ideas please let me know in the comments. I know value investing is not as flashy as speculating, but the longevity of investors is far greater than that of any speculator; moreover, it is of dire importance to know the difference of speculation and investing.
4/23/2021 BACIn @ $39.21
Reclaimed 21 EMA & 9 EMA after 7% pullback in a strong trend.
Stop Loss below 3 day low.
Possible Bullish Pennant!There is a possibility of this being a bullish pennant and moving upwards very quickly!
BAC VS 224 D CYCLECYCLE LENGHT: 224 DAYS OR (32 WEEKS - 7.5 MONTHS - ♀H)
NEXT TOP: 04 MAY
NEXT BOT: 09 JUNE
LIKE AND FOLLOW FOR MORE BANK OF AMERICA COMPANY (BAC) CYCLES.
PLEASE DROP A COMMENT IF YOU LIKED THE IDEA AND FEEL FREE TO POST YOUR OWN SET UPS.
*THIS IS NOT FINANCIAL ADVICE*
BAC. Setting up for Pullback. Add to Watchlist.Looking for Elliot wave number 5 to take us up.
Eyes on the horizon. Dig in.
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As fun as it is to practice patience, I will look for some more immediate action setups.
$BAC Before earningsBank of America is again near it's all time highs, close to testing again for a breakout. Earnings this week should confirm movement on the strong uptrend that we have seen since March lows. There is a slight divergence on the RSI indicator. The daily timeframe shows a toppish move on the stoch RSI, as well as MACD turning slightly red on the daily. Should BAC fail to breakout of these levels, we could see it test lower support, or even fill the gap put in a few days ago. Ichimoku is still showing a bullish trend at these levels. Looking for a breakout to confirm my 1.618 wave higher analysis.
BAC - LongOverall market structure for BAC has been on an up trend on the daily tf. Price currently consolidating forming a bullflag on the daily and on the hourly, price has been ranging / coiling the past 5 days. It looks like it is ready to pop and if it does, I want to catch it at once it breaks the 40-40.25 zone.
How to find channel and support/resistance.Here is how i quickly find channels and past resistance (now support)
AXP, BAC, and JPM finish with a strong close All three have a similar pattern U/V shape with good volume. Decreasing volume on the retrace and increasing on the up move. I'll be looking for some continuation plays. JPM in particular is at a big resistance so hoping for a good pop if it can get past that.
