Market News & Analysis


Top Story

Bank of America bullish breakout from 10-month basing configuration

Bank of America Corp (BAC)



click to enlarge charts

Key Levels (1 to 3 weeks)

Pivot (key support): 30.30

Resistances: 33.00, 36.30 & 39.50/40.00

Next support: 26.60

Directional Bias (1 to 3 weeks)

Bullish bias above 30.30 key medium-term pivotal support for a further potential upleg to retest the 05 Mar 2018 swing high area of 33.00 before targeting the next medium-term resistances at 36.30 and 39.50/40.00 next.

On the other hand, a daily close below 30.30 invalidates the bullish breakout for a choppy slide back to retest the range support of 26.60.

Key elements

  • BAC has managed to stage a bullish breakout from a 10-month bullish continuation “Cup & Handle” range configuration in place since 24 Dec 2018 low with the neckline resistance of the “Cup & Handle” now acting as a pull-back support at 30.30.
  • The “Cup & Handle” range configuration tends to indicate a potential bullish consolidation phase after a prior uptrend and a break above the “Cup & Handle” range resistance triggers the start of another up-trending phase.
  • The potential bullish exit target of the “Cup & Handle” stands at 39.50/40.00 with confluences with the upper boundary of a major ascending channel from 11 Feb 2016 low, Fibonacci expansion cluster and 15 Sep 2008 major swing high.
  • Medium-term momentum remains positive as indicated by the daily RSI oscillator which still has further room to manoeuvre to the upside before it reaches an extreme overbought level of 82.  
  • Relative strength analysis against sector (Financials) as seen from its ratio chart is suggesting further potential outperformance of BAC

Charts are from eSignal 


From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.