BAC dominated by bulls lifting the market higher throughout the day
Bank of America Corporation (BAC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BAC finished the month -1.53% lower at 23.75 after gaining $0.36 (1.54%) today, performing in line with the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BAC as at Jun 30, 2020):
Tuesday's trading range has been $0.81 (3.49%), that's below the last trading month's daily average range of $1.05. 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. Prices continued to consolidate within a tight trading range between 23.02 and 24.77 where it has been caught now for the whole last trading week.
Regardless of a weak opening the share managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on June 25th, BAC actually lost -6.35% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Tweezer Bottom and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 23.96 (R1). Bank of found buyers again today around 23.10 for the third trading day in a row after having found demand at 23.10 in the prior session and at 23.02 two days ago.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 24.77 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 23.02 where further sell stops could get triggered.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Bank of. Out of 561 times, BAC closed higher 49.73% 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 54.01% with an average market move of 0.53%.