BAC stuck within tight trading range
Bank of America Corporation (BAC) Technical Analysis Report for Jul 08, 2019 | by Techniquant Editorial Team
BAC ended Monday at 29.20 losing $0.06 (-0.21%), but still slightly outperforming the S&P 500 (-0.48%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BAC as at Jul 08, 2019):
Monday's trading range has been $0.36 (1.24%), that's below the last trading month's daily average range of $0.50. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BAC. Prices continued to consolidate within a tight trading range between 28.93 and 29.57 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on June 27th, BAC gained 2.80% on the following trading day.
Prices are trading close to the key technical resistance level at 29.50 (R1).
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the nearby swing high at 29.57 where further buy stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Bank of. Out of 85 times, BAC closed lower 51.76% of the time on the next trading day after the market condition occurred.