Bank of America (BAC) rallied almost 5% on Tues, 8 March 2011. It is almost touching its near term resistance at $14.70 as depicted in the chart below. BAC is currently in a consolidating symmetrical triangle pattern. A break above the triangle at the blue circle region on strong volume would signal a momentum buy. Note the huge volume on Tues. Can BAC break its resistance?
For the ichimoko trader, do note that BAC is nearing its support just above the cloud. A break below its cloud support could see BAC testing the 200day MA. A break below the 200 MA could see BAC touching $13. A change in cloud colour from green to red would signal a change in sentiment.
An aggressive trader could short BAC for a few cents profit at its current resistance with a tight stop loss placed just above the resistance (upper line of triangle).
For the ichimoko trader, do note that BAC is nearing its support just above the cloud. A break below its cloud support could see BAC testing the 200day MA. A break below the 200 MA could see BAC touching $13. A change in cloud colour from green to red would signal a change in sentiment.
An aggressive trader could short BAC for a few cents profit at its current resistance with a tight stop loss placed just above the resistance (upper line of triangle).
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