BAC pushes through Monday's high
Bank of America Corporation (BAC) Technical Analysis Report for Jul 09, 2019 | by Techniquant Editorial Team
BAC ended Tuesday at 29.35 gaining $0.15 (0.51%) on low volume, slightly outperforming the S&P 500 (0.12%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 29.30, Bank of confirmed its breakout through the prior session high after trading up to $0.12 above it intraday.
Daily Candlestick Chart (BAC as at Jul 09, 2019):
Tuesday's trading range has been $0.48 (1.66%), that's slightly below the last trading month's daily average range of $0.50. Weekly volatility is also lower, being way 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 whole last trading week.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
Prices are trading close to the key technical resistance level at 29.50 (R1). After having been unable to move lower than 28.94 in the previous session, the market found buyers again around the same price level today at 28.94. The last time this happened on July 3rd, BAC gained 0.72% on the following trading day.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the close-by swing high at 29.57 where further buy stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Bank of. Out of 57 times, BAC closed higher 52.63% 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 54.39% with an average market move of 0.61%.