Is Bank of America Poised For a Major Breakdown?
- Posted by TheArmoTrader
- on September 24th, 2013
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.
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
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.blog comments powered by Disqus
Jerry Khachoyan is currently an undergraduate student at UCLA pursuing a degree in Political Science. He started trading in September of 2008. He concentrates on using technical analysis and reading the tape to enter the best risk/reward trades. The stock market to him is one of the greatest inventions by man.
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