Bank of America (BAC) video analysis and trading plan, November 29th 2012 (English Language)

Hello traders,

I recorded a review for Bank of America (BAC), a well-known stock traded on the NYSE.

Hereunder is my video analysis for BAC:

The stock resumed its move lower on April 2010 and traded a resistance level and short setup at 15.30 with targets at 8.80 and 5.40. Notice as program trading came in right at the second target at 5.40 to take profits and price could not move lower.

It took three months during the last quarter of 2011 for price to reverse. When price climbed above the 8.65 level the larger sequence down was interrupted. Ball passed to bulls which were not initially capable of defending the 6.90 level. Eventually the 7.50 support area started getting participation and, on a second test at the end of July this year, bulls were able to defend their position.

The support and long setup area at 7.50 has targets at: 11.30 (1st target) and 13.30 (2nd target). In the above video I focused on a trading plan for the first target. In fact, you should also notice that a potentially strong resistance level is located at 12.40.

On the daily chart I could locate current supports at 8.90 and, on a shorter timeframe, the 9.40 support. The 8.90 support and long setups has targets at 10.40 and 11.30. The second target nicely lines up with the 11.30 first target of the larger weekly support at 7.50, therefore showing good chances for price to get there. Find hereunder the trading plan for BAC:

“A trading plan for Bank of America (BAC)” (published Nov 29th, 2012)

“A trading plan for Bank of America (BAC)” (published Nov 29th, 2012)

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Filed under English language, Stocks, Trading Plan

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