BANK OF AMERICA CORP.: TECHNICAL ANALYSIS
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL STOP |
| Entry Point | 35.90 |
| Take Profit | 32.70 |
| Stop Loss | 37.00 |
| Key Levels | 32.70, 33.00, 35.90, 36.00, 36.60, 37.00, 38.00, 40.50 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 38.00 |
| Take Profit | 40.60 |
| Stop Loss | 37.00 |
| Key Levels | 32.70, 33.00, 35.90, 36.00, 36.60, 37.00, 38.00, 40.50 |
Shares of Bank of America Corp., one of the largest banks and research agencies in the United States, are trading at 37.00.
On the daily chart, the price is near the support line of the global ascending channel with dynamic boundaries of 40.50–36.00 and is preparing for another attempt to exit it.
On the four-hour chart, after reaching the channel support level of 36.60, the quotes decline to the February low of 33.00. The continuation of the negative dynamics is confirmed by the completed formation of the local reversal pattern Head and shoulders with the Neckline around 36.60.
Technical indicators are weakening the buy signal: fast EMAs on the Alligator indicator are approaching the signal line, narrowing the range of fluctuations, and the AO histogram is forming downward bars above the transition level.
Trading tips
Short positions may be opened after the price declines and consolidates below 35.90, with the target at 32.70. Stop loss – 37.00. Implementation period: 7 days or more.
Long positions may be opened after the price rises and consolidates above 38.00, with the target at 40.60. Stop loss – 37.00.
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