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).

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Friday, June 1, 2012

Bank of America (BAC) - reversal pattern. 2012.06.01



Bank of America shares broke out of the descending channel a few days ago and the T1 trend line was already tested as a support yesterday.

Moreover, the volume was high (33.1 M) on a bullish day and all of the technical clues are pointing now towards a reversal. The first target is in the $8.10 area, followed by the $10.00 level on a mid-term scenario. The first resistance stands at the $7.50 level.

Although the technical perspective is favoring a bullish reversal, the investors must consider the weak economic data from Europe (euro-area unemployment at 11% and record low yields on germen bonds) that could affect the US markets as well, especially the banks and most of all Bank of America due to its low cost/share (below $10.00).      


1 comment:

  1. Good chart, thanks. True to form at the moment

    ReplyDelete