In-Depth Technical Analysis of BANK OF AMERICA CORP.

Our stock screener has detected a potential breakout setup on BANK OF AMERICA CORP (NYSE:BAC). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:BAC.

Insights from Technical Analysis

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

Overall BAC gets a technical rating of 8 out of 10. Although BAC is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• BAC is one of the better performing stocks in the Banks industry, it outperforms 83% of 416 stocks in the same industry.
• BAC is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so BAC is lagging the market slightly.
• When comparing the performance of all stocks over the past year, BAC turns out to be only a medium performer in the overall market: it outperformed 60% of all stocks.
• In the last month BAC has a been trading in the 32.35 - 35.10 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Our latest full technical report of BAC contains the most current technical analsysis.

Why is NYSE:BAC a setup?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:BAC exhibits a 9 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, BAC also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 34.43. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 34.10, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for BAC in the last couple of days, which is a good sign.

How to trade NYSE:BAC?

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

Of course, there are many ways to trade or not trade NYSE:BAC and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Our Breakout screener lists more breakout setups and is updated daily.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.