Can Bank of America Break Out?Bank of America fell sharply over the summer as Warren Buffett sold shares. But now some traders may think the lender has stabilized.
The first pattern today’s chart is the rally between early August and early September. BAC retraced half the move before returning to the upside. That may suggest that buyers are in charge.
Second, the bounce occurred at the 200-day simple moving average (SMA). The 50-day SMA is also above the 100-day SMA and both are higher than the 200-day SMA. That order, with the faster SMAs above the slower, may be consistent with a longer-term uptrend.
Third is the September 4 high of $40.95. The stock pushed above this level on Thursday before slipping back below it. Will traders view it as a trigger for a breakout?
Finally, our 2 MA Ratio custom script shows that the 8-day exponential moving average (EMA) has crossed above the 21-day EMA. That may reflect increased bullishness in the short term.
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