BAC rising from support LONG
Updated
BAC on the daily recently descended from an asymmetrical head and shoulders pattern
near to or in the supply zone as indicated by the Luxalgo indicator down into the demand
zone in late March and early May for a double bottom. Fundamentally, the banking system
has been propped up by the federal central banking mechanisms and the situation seems to
have stabilized. DPST and KRE banking ETFs have had some good days of late. On the chart
the Luxalgo Echo indicator, a predictive algorithmic tool, suggests that BAC will rise during this
summer and then bounced down from the resistance of the trendline of the neck of the
asymmetrical H & S. I can easily conclude that BAC is ripe for a long trade. I will take
an out of the money call option for DTE 9/20 striking #37.00. I will set the stop loss at
20% - Of the 15 contracts, I will close 2 after each 20% profit level is achieved and expect
to make overall 150-250% by mid-August. Because of time decay, I will not carry these
open beyond September 1st.
near to or in the supply zone as indicated by the Luxalgo indicator down into the demand
zone in late March and early May for a double bottom. Fundamentally, the banking system
has been propped up by the federal central banking mechanisms and the situation seems to
have stabilized. DPST and KRE banking ETFs have had some good days of late. On the chart
the Luxalgo Echo indicator, a predictive algorithmic tool, suggests that BAC will rise during this
summer and then bounced down from the resistance of the trendline of the neck of the
asymmetrical H & S. I can easily conclude that BAC is ripe for a long trade. I will take
an out of the money call option for DTE 9/20 striking #37.00. I will set the stop loss at
20% - Of the 15 contracts, I will close 2 after each 20% profit level is achieved and expect
to make overall 150-250% by mid-August. Because of time decay, I will not carry these
open beyond September 1st.
Trade active
BAC up trending DPST popped KRE popped. All is well
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