BAC dominated by bulls lifting the market higher throughout the day
Bank of America Corporation (BAC) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
BAC finished the week 3.13% higher at 24.02 after surging $1.25 (5.49%) today, significantly outperforming the S&P 500 (1.05%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on May 27th, BAC actually lost -4.31% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 23.16, the share confirmed its breakout through the prior session high after trading up to $0.89 above it intraday.
Daily Candlestick Chart (BAC as at Jul 10, 2020):
Friday's trading range has been $1.37 (6.03%), that's far above the last trading month's daily average range of $0.89. 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 lower than usual for BAC.
Even with a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 24.07 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 24.08 where further buy stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Its common bullish interpretation has been confirmed for Bank of. Out of 125 times, BAC closed higher 49.60% 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 63.20% with an average market move of 1.59%.