Can Bank of America Break Out?
Bank of America fell sharply over the summer as Warren Buffett sold shares. But now some traders may think the lender has stabilized.
The first pattern today’s chart is the rally between early August and early September. BAC retraced half the move before returning to the upside. That may suggest that buyers are in charge.
Second, the bounce occurred at the 200-day simple moving average (SMA). The 50-day SMA is also above the 100-day SMA and both are higher than the 200-day SMA. That order, with the faster SMAs above the slower, may be consistent with a longer-term uptrend.
Third is the September 4 high of $40.95. The stock pushed above this level on Thursday before slipping back below it. Will traders view it as a trigger for a breakout?
Finally, our 2 MA Ratio custom script shows that the 8-day exponential moving average (EMA) has crossed above the 21-day EMA. That may reflect increased bullishness in the short term.
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The first pattern today’s chart is the rally between early August and early September. BAC retraced half the move before returning to the upside. That may suggest that buyers are in charge.
Second, the bounce occurred at the 200-day simple moving average (SMA). The 50-day SMA is also above the 100-day SMA and both are higher than the 200-day SMA. That order, with the faster SMAs above the slower, may be consistent with a longer-term uptrend.
Third is the September 4 high of $40.95. The stock pushed above this level on Thursday before slipping back below it. Will traders view it as a trigger for a breakout?
Finally, our 2 MA Ratio custom script shows that the 8-day exponential moving average (EMA) has crossed above the 21-day EMA. That may reflect increased bullishness in the short term.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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