BAC finds buyers around 28.96 for the third day in a row
Bank of America Corporation (BAC) Technical Analysis Report for Jul 10, 2019 | by Techniquant Editorial Team
BAC ended Wednesday at 29.02 losing $0.33 (-1.12%), strongly underperforming the S&P 500 (0.45%). Trading $0.23 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. 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 Jul 10, 2019):
Wednesday's trading range has been $0.44 (1.51%), that's slightly below the last trading month's daily average range of $0.49. 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 28.94 and 29.42 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving higher in the prior session, the market closed lower but above the previous day's open today, forming a bearish Harami Candle.
Prices are trading close to the key technical support level at 28.74 (S1). Bank of found buyers again today around 28.96 for the third trading day in a row after having found demand at 28.94 in the prior session and at 28.94 two days ago. The last time this happened on June 18th, BAC actually lost -1.05% on the following trading day.
The share 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 29.42 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Bank of. Out of 584 times, BAC closed higher 53.94% 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 55.48% with an average market move of 0.90%.