BAC finds buyers again around 34.66
Bank of America Corporation (BAC) Technical Analysis Report for Jan 13, 2020 | by Techniquant Editorial Team
BAC finished Monday at 35.06 gaining $0.32 (0.92%), slightly outperforming the S&P 500 (0.7%). Trading up to $0.18 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on December 24, 2019, BAC gained 0.85% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BAC as at Jan 13, 2020):
Monday's trading range has been $0.41 (1.18%), that's slightly above the last trading month's daily average range of $0.40. 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 notably lower than usual for BAC.
Two candlestick patterns are matching today's price action, the Tweezer Bottom and the White Candle which are both known as bullish patterns.
The market managed to close back above the 20-day moving average at 35.03. Prices are trading close to the key technical resistance level at 35.24 (R1). After having been unable to move lower than 34.66 in the prior session, the stock found buyers again around the same price level today at 34.66.
While Bank of is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the nearby swing high at 35.33 where further buy stops could get activated. With prices trading close to this year's high at 35.66, upside momentum might accelerate should BAC be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Bank of. Out of 141 times, BAC closed lower 53.19% of the time on the next trading day after the market condition occurred.