BAC breaks below Monday's low
Bank of America Corporation (BAC) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BAC ended Tuesday at 28.98 losing $0.24 (-0.82%), slightly underperforming the S&P 500 (-0.34%) ahead of Wednesday's earnings report. Closing below Monday's low at 29.08, the share confirmed its breakout through the previous session low after trading up to $0.22 below it intraday.
Daily Candlestick Chart (BAC as at Jul 16, 2019):
BAC is set to report earnings before tomorrow's market open. For the upcoming report, analysts expect the company to have earned $0.7 per share. The company's last earnings report was released on April 16, 2019, when Bank of America Corporation reported earnings of $0.7 per share beating market expectations by 7.7%.
Tuesday's trading range has been $0.34 (1.17%), that's below the last trading month's daily average range of $0.48. 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.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on February 13th, BAC lost -1.08% on the following trading day.
Prices are trading close to the key technical support level at 28.74 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 29.42 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Bank of. Out of 587 times, BAC closed higher 53.83% 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 53.49% with an average market move of 0.59%.