BAC runs into sellers again around 24.93
Bank of America Corporation (BAC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
BAC finished the month 4.76% higher at 24.88 after edging higher $0.04 (0.16%) today, underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BAC as at Jul 31, 2020):
Friday's trading range has been $0.47 (1.89%), that's below the last trading month's daily average range of $0.65. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BAC.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Hanging Man.
After trading down to 24.46 earlier during the day, the market bounced off the key technical support level at 24.87 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move above 24.95 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 24.93. The last time this happened on July 9th, BAC actually gained 5.49% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 25.29 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Bank of. Out of 386 times, BAC closed higher 54.40% 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 52.33% with an average market move of 0.39%.