Market Technical View: Bank of America bullish engulfing pattern

Market Technical View is a blog that mostly concerns the technical analysis of different financial instruments like indices, commodities, stocks, ETFs and currencies.

All the posts are structured in 3 main chapters that can be found in Content, in the upper right-hand corner of the blog.

Market perspective. The technical approach consists of chart patterns and important support/resistance zones. The purpose of this section is to give directions of the price on short and medium term (a few days up to a few months).

Trading setups. The analysis posted here will provide trading scenarios based on different technical tools.

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Friday, February 17, 2012

Bank of America bullish engulfing pattern

Bank of America reversed at the support level of $7.65 and, along with the previous candle, a bullish engulfing candle pattern has formed.

If there won’t be any important news that could influence this stock, the previous target of $8.40-$8.90 could be achieved but if the $7.65 support level is considered as a stop loss, the risk/reward ratio is not satisfactory.

Previous analysis:

http://markettechnicalview.blogspot.com/2012/02/bank-of-america-reacted-to-840.html

http://markettechnicalview.blogspot.com/2012/02/bank-of-america-is-on-its-way-to-840.html