Monday, May 6, 2013

BAC - Stalling Out or Ready to Bust a Move?

The daily chart for Bank of America, BAC, shows that the stock was up against the highs of mid-March today. This is a resistance point, if it busts through good times may be ahead. Does the weekly chart confirm this?
The weekly confirms the resistance level that was hit today, the gap from back in March 2011 is looking to be closed, closing those "windows" is a powerful way to bust through resistance. This level is also the top of a double bottom pattern from back in December 2010. So, I see 3 signals that need to be taken out at this level, the March 2013 peak, the March 2011 gap down and the late 2010 double bottom. If this is all broken we could see nice move up to the $17 range. Watch for that it to bust out before putting on a trade.

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