I tweeted this stock chart of Bank of America (BAC) the other day. Since peaking out around $18, the bank has been retreating lower inch by inch and formulating a nice wedge pattern.
See why Bank of America is part of my 4 stocks for 2010.
Right now, the stock is setting up very close to possibly breaking out (above $16.50). Moreover, the 50 and 200-day moving average are coming closer together. Obviously, it would be a bearish sign if this kind of moving average crossover took place here, so we want to see to see the 50-day pick up a little and create some separation from the 200.
Should we see the breakout here, then I like a price target of $18 – 19. If the resistance holds, then look to see if support holds at $14.
More on this topic
(What's this?)
Bank of America (NYSE: BAC) May Never Fully Recover
(Money Morning, 4/19/12)
Morgan Stanley and Bank of America Report Solid Earnings
(Wall Street Daily, 4/20/12)
Paulson's Upcoming Testimony Leaves Questions Unanswered
(The Value at Risk, 7/15/09)