BANK OF AMERICA CORP is showing promising signs of setting up for a breakout.

BANK OF AMERICA CORP (NYSE:BAC) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:BAC.

Technical analysis of NYSE:BAC

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.

Taking everything into account, BAC scores 10 out of 10 in our technical rating. Both in the recent history as in the last year, BAC has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, BAC did better than 88% of all other stocks. On top of that, BAC also shows a nice and consistent pattern of rising prices.
• BAC is one of the better performing stocks in the Banks industry, it outperforms 94% of 410 stocks in the same industry.
• BAC is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month BAC has a been trading in the 37.46 - 40.19 range, which is quite wide. It is currently trading near the high of this range.

For an up to date full technical analysis you can check the technical report of BAC

Looking at the Setup

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:BAC is 9:

BAC has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 40.00. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 39.45, 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. Another positive sign is the recent Pocket Pivot signal.

How can NYSE:BAC be traded?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

More breakout setups can be found in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice. 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.