Is Bank of America Poised For a Major Breakdown?

Bank of America has had a solid year. It is up about 16% year-to-date, however it is lagging the market which is sitting at around +19% year-to-date. After topping in late July, the stock has spent the last 2 months consolidating. Despite the consolidation, it might be setting up for a major breakdown soon.

The Chart

Below is a daily chart for Bank of America ($BAC). As you see, it topped in late July after it touched $15. It spent quite some time consolidating and I actually was stalking it for a breakout to the upside. However, it failed a breakout attempt and now is actually looking potentially very bearish. A break below $14.00 can trigger a short trade with a fairly tight stop if it doesn’t follow through with the breakdown below 14. What I want to see is it slicing through that support (which used to be resistance) like a hot knife through butter. I’m looking at $12.15 ish as my main target. I might look for some covers at $13 if I do take the trade (to cover risk, I don’t think that really is a major level).

$BAC Daily chart

BAC sept23



The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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