BAC dominated by bulls lifting the market higher throughout the day
Bank of America Corporation (BAC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BAC finished Thursday at 22.72 gaining $1.62 (7.68%) on low volume, strongly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 22.10, the stock confirmed its breakout through the prior session high after trading up to $0.85 above it intraday.
Daily Candlestick Chart (BAC as at Mar 26, 2020):
Thursday's trading range has been $1.78 (8.35%), that's slightly below the last trading month's daily average range of $1.89. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BAC.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 21.51 (now S1), which is likely to act as support going forward. The last time this happened on March 17th, BAC actually lost -5.41% on the following trading day. Prices are trading close to the key technical resistance level at 23.96 (R1).
While Bank of is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Bank of. Out of 215 times, BAC closed higher 50.23% 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 59.07% with an average market move of 1.55%.