BAC gains $0.04 (0.13%) after posting strong earnings
Bank of America Corporation (BAC) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
BAC ended Tuesday at 29.88 gaining $0.04 (0.13%) on high volume, slightly outperforming the S&P 500 (0.05%) following today's earnings report. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BAC as at Apr 16, 2019):
BAC reported earnings of $0.7 per share before today's market open. With analysts having expected an EPS of $0.65, Bank of America Corporation beat market expectations by 7.7%. The company's last earnings report was released on Jan. 16, 2019, when Bank of America Corporation reported earnings of $0.7 per share topping market expectations by 11.1%.
Tuesday's trading range has been $1.05 (3.58%), that's far above the last trading month's daily average range of $0.60. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BAC.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on April 12th, BAC actually lost -1.09% on the following trading day.
Prices are trading close to the key technical resistance level at 30.14 (R1). After having been unable to move above 30.14 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 30.05.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 30.22 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post strong Earnings Report" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Bank of. Out of 21 times, BAC closed higher 76.19% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 66.67% with an average market move of 1.75%.