Bank of America still heading into resistance Still looking weak coming into this area..with a lower high. Watching this weeks close
BAC
BAC uptrend forming, but i think a correction is due hereI marked the range at which it may trade with blue trend lines and i set up my short idea as well. Nice risk vs reward ratio. NOTE The market is not open as the time of writing so i will wait to see what happens when the market opens, before making a decision.
Bearish Bac Breakout TradeSo the brexit aftermath might bring us a bear trend in bac, especially since rate hike is pretty much off the table now. So Entry 12.70 after a break down of support here would be a pretty good entry, and can ride it to around 12
WFC and other Financials Looking Grim WFC has been unable to gain 50.5-51 resistance for months now, and the chart may indicate that it is time to retest lower. the last weekly level retest was 44.59, which bounced strongly and reversed. if 46.6 is lost, we should look towards 43.2 for next support test.
Lower still is 41.65 and 38.03 as well as others, but these levels may not apply for some time
BAC headed to 9.4Wide trading range 18.8-14.1-9.4. So long as BAC is below 14.1, bias towards 9.4.
Narrow trading range 14.1-11.75-9.4. Failed to hold top end of narrow range 14.1 (mid point of wider range), bias towards 11.75 (midpoint) and approaching midpoint of midpoint 12.93. Watch if 12.93 holds. If it does, expect a retest of 14.1 but must take out 13.515 (14.1-12.93 midpoint) first. Break below midpoint 11.75, bias towards 9.4.
My sense, headed to 9.4 because I doubt it can take out the strong down trend line at current levels.
BAC TO MAKE NEW YEARLY LOWS?= Great R/R for SHORTTechnical analysis of BAC's chart indicates strong levels of resistance at 18, and 15.25, the latter of which has just seen a completed double top in the past few weeks
This indicates that we should break lows and test lower, 9.9 and 8.27 (more significant) supports are supports we could test.
let me know what you think
10% downside if $62 is lostGS was clear signs of buying or bullish absorption earlier this year. Early April GS pullback to test and define the number of "weak hands" that were remaining. The test produced very little selling and resulting in price finding bids into resistance.
Now that the "gap" is closed there appear to be very little demand and a weak close for the week would imply that we trade lower to retest the conviction of previously identified bulls. If so longs could be exposed to 10% risk.
Good Luck
signs of accumulation. bullish above $13.00BAC is showing signs of Accumulation. We can first reference the "preliminary supply" (PSY) in the end of 2015 followed by a "selling climax" (SCLX). The SCLX is a sign of a stopping actions and marks the beginning of possible accumulation. The "automatic rally" is the "dead cat bounce" that allows us to identify future resistance. This was followed by several test and re-test.
This April BAC broke out of the range created a "sign of strength" (SOS) and "jump across creek" (JAC). Now we are seeing prices retreat on contracting volume. This suggest that supply remain in strong hands. If volume remains weak; we have confirmation that price are very likely to begin the next phase: MARKUP.
Look for prices to confirm support while "backing up to the edge of the creek" (BEUC). Coincidentl, BEUC is very near the 50% Fibonacci retracement. I'm a buyer at $12.70
Good Luck!
Key Hidden Levels: A few trades we sharedThese are a few trades we shared at the KHL chatroom, I have shared the link in my previous posts.
If you're interested in learning more about the methods used by Tim West, which I learned and apply in my own trading, contact me privately. I also offer a signals service, with more setups, for FX, equities, metals and oil for the most part.
It's clear the market is in an uptrend for now. There is an uptrend signal in SPY, which indicates we might see a reaction by the 14-15th, which happens to match the FOMC meeting date. I reccomend monitoring equity longs closely by then. I'm in these and a few other trades, and I'll be looking to book profits safely. I'll update this publication if needed.
Check out my updated track record here: pastebin.com
Cheers!
Ivan Labrie
Link to Tim West's chatroom: www.tradingview.com
We discuss setups like this often there. Feel free to stop by and subscribe to his indicator pack. If you have any questions ask.
Risk disclaimer: My analysis is provided as general market commentary and does not constitute investment advice. I will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Banks are Bullish in near terms I am seeing bullish ascending/asymmetrical triangles forming on BAC and C, and rising wedges on WFC and JPM's hourly charts. Predicting positive reactions to economic data and interest rates in the upcoming weeks.
DFS: Post-FOMC longDFS is offering an interesting setup in the monthly, daily and 65 min charts. We can clearly see the reaction to the news has been positive and can expect continuation into the highs. Target on chart is derived from monthly price action, the stop from the daily, and we use the 65 min timeframe to get a clear picture of the price action around the news. All 3 timeframes support the idea that going long at market open is wise.
Risk is a drop to 53.74, but upside is as high as 58.10 within 3 months or less.
If interested in my trading signals, or in personal tuition, contact me privately. I'm offering a considerable discount on a packaged course which includes access to my private trading signals list for a year.
Cheers,
Link to Tim West's chatroom: www.tradingview.com
We discuss setups like this often there. Feel free to stop by and subscribe to his indicator pack. If you have any questions ask.
BACBDC Bank of America, is trading within two parallel lines. Could retest the bottom line or move higher to the upper channel line. MACD above 50% is good. Look for resistance at the 200sma
BAC - big weekly/monthly range, wait.Since I saw some bullish charts on 1H and 4H recently : notice the 2 year topping range, if you are long now you will be trading right in to a supply area.
BANK AMERICA CORP - REVERSE H&S PATTERNThe price seems pointing to H&S neckline, so we can expect a test on this level before a possible bounce to the upside. A possible measured target could be a confluence area between 16,50$ and 18$.
SPX Pullbacks Are Volumeless, Stay the CourseTraders have seen this before, and it continues to play out as the global economic climate breaks down. Although these pullbacks in the SPX are often lofty and swift, it is important to realize volume is the most import factor when considering the validity of a pullback.
Here , we can see that the move in SPY is volumeless. The entire squeeze from the Feb. 11 low has seen volume under the 20-day average. On balance volume is not supporting this move.
Next, when deciphering a mere pullback following a steep decline or an inflection point, think what is the "smart money" doing?
Simple. They've been selling to the dumb money for the last five weeks . Corporate buybacks continue to be the only demand in US equities.
Fundamentally, the index is highly expensive versus historical valuations. At a 21.79 P/E, the SPX is over 5 points over its mean. It's over 11 points higher that the "sweet spot." Shiller P/E, which tracks 10 years of inflation-adjusted earnings, is at 24.98 (also, historically expensive outside a recession).
Furthermore, earnings are, indeed, rolling over (along with the business cycle) while real earnings growth is cratering at -14.5 percent. Last time that happen, the US saw a recession in the early-90s, the recession following the tech bubble and the 2008 financial crisis.
See that here !
Aside from there lack of conviction with permabulls being scooped up in buyback fever, the index is about 160 points of its most recent low. Yesterday, price action closed at daily resistance at 1,978 and near the 50% Fib. level from this years epic start.
If it can close above these two levels, the next level that is key is 2,020. If bulls overtake this level a potential retest of 2,071 is probable.
However, this is how I believe it will go as the dollar continues to strengthen and the Fed continues to be out of place:
A bear market scenario like those that followed the tech bubble and financial crisis would put the SPX near 1,078.
This year, we've also seen SocGen's Albert Edwards forecast a potential 75% decline for the broader index.
17 months ago, I published a chart showing a whopping 71% potential decline in SPY from then current levels .
Granted, this was merely based on historical references and calculation, but interesting nontheless.
Will you get a chair when the music stops?
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The Dimon Bottom Hype Is OverCNBC has loved to refer the recent pullback in the SPX as the "Dimon Bottom" because CEO Jamie Dimon purchased roughly $26 million worth of JPM shares. However, it's not looking for those wanting to hold to believe in the recovery dream.
Whether investors want to believe it or not, the U.S. economic cycle is rolling over; and, considering the very high correlation to the SPX, J.P. Morgan shares will unlikely be saved.
Since 2014, I been warning of potential headwinds from energy exposure in U.S. banks. It may not cripple the sixth-largest bank in the world, but death by 1,000 cuts won't be any better for shareholders.
On Tuesday, JPM reported a 20 percent decline in trading revenues, as well as a $500 million increase in provisions (up 60 percent) due to their energy exposure. Fee revenues were down 25 percent.
Technically, the weekly chart is showing more downside is to come. Traders are watching a 20-weekly bearish convergence with the 50- and 72-weekly EMA. Price action is, also, currently below the 200-weekly EMA.
The inability to show support above this level and challenge $59.60 could poise further stress on shares.
Near-term, we'll see price action test the trend/price demand between $52.30-$53.50. A close below $52.30 would open up $48.3 and trend lower to $43.74.
If looking at Fib. retracements, a close underneath Aug 24, 2015 Black Monday low, 1.618 Fib. extension would stand at $37.54. This would be my target for Q2-17.
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Possible Head & Shoulders breakoutLooks like our favorite investment bank may be have even more of a down swing in store. This head and shoulders pattern looks pretty well defined. The current candle however is sitting on a support level around 170 but if that is breached then 150-152 may be in store. as the next stop.
Bat Still Valid - Can it hold? Despite Yesterday's rally in the stock markets, $BAC's Bat pattern wasn't violated as the price remained inside the PRZ,
The fact that the price climbed above the Fast SMA line and created a minor uptrend line is a bullish signal but as long as the price remains below the broken major trend line and below X (18.5$) the bearish scenario is still valid.
Assuming that we will see $BAC testing 18$ again, the R/R for the bearish setup is about 2.
More conservative traders should probably wait for the price to close below the Fast SMA line.. at least.
Tomer, The MarketZone
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BAC - BREAKING THE BANKA developing head and shoulder position of Bank of America
- A close out today below 15 would indicate a break in the cycle and a subsiqent sever sell off
- Inversely, a break above 16 would be an early sign of a bull run.
- MACD is approaching a critical inflection point as well.
Good luck & happy trading!
