Technical Pulse – Bank of America Corp March 5, 2020 534

The bullish sentiment for Bank of America (US: BAC) came to a halt in January when the stock entered a truncated mode below 36.00. However, based on the technical and wave analyses, the stock may exhibit a bullish rebound after a series of corrections.

  1. The Elliott wave count suggests that the stock has completed its 5-wave impulse minute phase and current wave analysis indicates that the stock is in a zig-zag correction mode, with 3 waves completed out of 5 for ((a)) wave.
  2. Candlestick price action indicates a clear bullish rebound after the formation of the bullish hammer on Wednesday when it invalidated the previous strong bearish candle.
  3. The bullish hammer closes above 88.6% of the Fibonacci level and demand level.
  4. The bullish hammer closes above 238.2% of the expansion level of wave (i)-(ii). This will signify a (iv) wave is underway.
  5. The Relative Strength Index (RSI) shows a clear bullish divergence and the indicator also suggest that the stock is currently oversold especially when the divergence happened below the 40 oversold line.

*Should the demand level be invalidated, we might see the price fall towards the 26.00 regions.



Relative Strength Index

Red line = 60 Overbought Line

Green line = 40 Oversold Line

Join our telegram channel on technical analysis for trends, entry and exit prices over Stocks, ETFs, and Indices!

Featuring regular TA posts and requests to analyse specific stocks
Click to join!
Notify of
Inline Feedbacks
View all comments

Get access to all the latest market news, reports, technical analysis
by signing up for a free account today!