Don't Ignore This Chart!

Bank of America Holds above Breakout Zone $BAC


Bank of America (BAC) broke out of a large bullish continuation pattern three weeks' ago and this breakout is holding. Overall, BAC surged from June 2016 to February 2017 and then consolidated with a large triangle pattern. A consolidation within an uptrend is a bullish continuation pattern and the breakout around 25 signaled a continuation of this uptrend. The breakout zone around 25 turns into the first support level to watch. A close back below 25 would throw cold water on the breakout and warrant a re-evaluation. I would not, however, turn completely bearish because this would not be enough to reverse the long-term uptrend. The August lows mark key support for the long-term uptrend. The indicator window shows momentum improving as MACD turns up and moves above its signal line. 

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--Arthur Hill CMT

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at 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. Learn More
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