BAC run-up till ER NYSE:BAC
With vaccine news, banks are expected to have less money put aside to cover default-risk-related assets, that is the recent run up.
Also the fed Rate has "quietly" go up and US 10Y also run up which cause this bank bull run.
so Bull side: more vaccine/news rally this can go to test 30.4 level , which could be a strong resistance.
Bear side: considering 2H,4H MACD strength as declined although price has pushed higher, this indicate upside strength losing.
Overall : current price indicate bull side, unless 27.8 area breaks ( we also have 20MA below) we can hold and using covered calls at 31 level to lower position cost.
Patience is the key.
BAC
Financials in trouble200sma has been a strong resistance since the March drop. The red circles show 4 times trying to get to it.
Placing fibonacci retracement lines shows confluence with a support level (green rectangle from late June --> early July)
The 20sma crossed below the 50sma on September 27th. (Bearish signal trend model)
Also, if we close at the current price, we are getting a bearish engulfing candle.
I would feel comfortable getting in around $22.7, being fundamentally bullish on the sector.
BAC LEAPS BAC looking to repeat this pattern, looking to retest 55 within these next couple years. Bounce off my support zone at 18.04 making its way up to retest 35.40 break that we could see an overall move up to $44. Perfect stock to add to your long term portfolio. Warren Buffet's second largest holding in his portfolio is BAC so why not invest and follow the most successful investor of all time. Shares are a good hold and ITM calls for 01/2022 are perfect to add to the portfolio.
XLF Getting as tight as it can getPicture perfect chart here.
Only 4% between following key levels:
- Support line has been tested 5 times & now coinciding with 50 dma
- Resistance line has been tested 2 times & has been coinciding with 200 dma
Daily RSI convergence confirming price action
While in the middle of those support / resistance lines, 2 major dma's, we are also stuck between the 50 & 61.8 retracement levels (Pre-Covid high to Covid low)
Is the massive $C breakdown this week to be interpreted as a signal of strength or a look into the future for the financial sector?
With $XLK & $XLV having already posted huge recoveries and subsequent gains on the year, is it $XLF's turn to run hot in the reflation trade?
Can $XLF hold its gains if the rest of the broader market continues to sell off lower, representing what would most likely be dubbed the 'Great Rotation' ?
So many questions, however I think this chart & the $SPX chart is all you're going to need over the next month and a half heading into election.
If (lol) - WHEN this thing breaks out, on notable volume and a huge move in the RSI, I think it'll drag the market along with it, whether to the upside or downside.
** I am currently sitting on a bullish $BAC position, so my bias is bullish but it can easily head the other way.
"BAC"k and Forth in Bank of AmericaAgainst a backdrop of the broader stock indices that don't seem to want to spend ANY time, at ANY level (w/ the possible exception of the Russell 2000), today we forayed BACk into Bank of America using a dynamic support level that printed at 25.5. When breakouts or fades get tricky, we like to fall BACk (okay, stop me) to names that are staying inside a well defined channel.
We have additional confluence, or strength of signal (SOS), at the 233 EMA (T-Line) on the 1H timeframe.
Expressed trade as Oct 25/28 Bull Call for $1.15db A $1.15 debit sounds familiar - maybe check out our SPY Put idea while you're here. See Related Idea.
Risk is the usual 50%-ish of premium paid.
BAC - Long, Target $27.50 and $29.00 in the next 2 weeksBAC is forming Cup and Handle on D1 chart.
Now is $26.50. with this pattern BAC's target are: $27.50 and $29.00.
While the market in the correction process.
The cash flow from other Sectors that are Overbought is certainly looking for a new destination.
Banking is a good Sectors that is regaining balance when it exits the Oversold zone and keep going up slowly.
I predict BAC will hit 2 targets in the next 2 weeks, with 70% confidence level, 10% Sideway and 20% drop to $25.50 - $26.00.
Ichimoku, RSI, MACD are supporting this uptrend too.
Disclaimer!