Bank of America (BAC) hit a 52-week high in late July and then corrected with a falling flag or channel the last five weeks. Despite this correction, the indicator window shows On Balance Volume (OBV) remaining strong and hitting a new high last week. This suggests that BAC is still under accumulation and prices could breakout. Joe Granville, creator of OBV and a pioneer in technical analysis, passed away on Monday. He was 90.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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