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Bank of America Corp (NYSE: BAC) | The Mesh Report

Bank of America Corp (NYSE: BAC)

Christian Tharp, CMT May 28, 2020 Comments Off on Bank of America Corp (NYSE: BAC)

Bank of America Corp. is a bank and financial holding company, which engages in the provision of banking and nonbank financial services. It operates through the following segments: Consumer Banking, Global Wealth and Investment Management, Global Banking, Global Markets, and All Other. 

Take a look at the 1-year chart America (NYSE: BAC) below with my added notations:

1-year chart America (NYSE: BAC)

BAC had formed a key level of resistance at the $25 level (green) during the past two to three months. However, the stock broke through that resistance yesterday. If BAC comes back down to that $25 level, which should now act as support, a bounce could be expected.

The Tale of the Tape: BAC broke through its key level of resistance at $25. A long trade could be entered on a pull back down to that level. However, a break back below $25 could negate the forecast for a higher move and would be an opportunity to get short the stock.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!
Christian Tharp, CMT



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