BAC finds buyers again around 24.05
Bank of America Corporation (BAC) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
BAC ended Monday at 24.61 gaining $0.49 (2.03%), significantly outperforming the S&P 500 (0.38%). 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 Jun 01, 2020):
Monday's trading range has been $0.82 (3.38%), that's slightly below the last trading month's daily average range of $0.82. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BAC.
Prices are trading close to the key technical resistance level at 25.11 (R1). After having been unable to move lower than 24.06 in the previous session, the market found buyers again around the same price level today at 24.05. The last time this happened on May 28th, BAC actually lost -2.98% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Bank of. Out of 560 times, BAC closed higher 49.82% 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 53.75% with an average market move of 0.49%.