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