Bank of America (BAC) has moved above a major resistance zone that has frustrated the shareholders for 3 years. This surge is meaningful. As long as the $18 level holds, this looks like a classic breakout.
The volume surge on the breakout is also very bullish support. This is an industry wide move that looks like the start of a major rally for financials. Don't ignore the surge in financials.
Have a great weekend.
Good trading,
Greg Schnell, CMT, MFTA.
About the author:
Greg Schnell, CMT, MFTA is Chief Technical Analyst at Osprey Strategic specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA).
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