There are signs that NYSE:BAC may be ready to breakout.

BANK OF AMERICA CORP (NYSE:BAC) has been identified as a Technical Breakout Setup Pattern by our stock screener. This pattern typically occurs when a stock takes a pause after a significant rise, indicating the possibility of a continuation in the trend. While it's impossible to predict with certainty, it might be beneficial to monitor NYSE:BAC.

Technical analysis of NYSE:BAC

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

Overall BAC gets a technical rating of 8 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, BAC is only an average performer.

• The long and short term trends are both positive. This is looking good!
• BAC is part of the Banks industry. There are 416 other stocks in this industry. BAC outperforms 83% of them.
• BAC is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month BAC has a been trading in the 32.35 - 34.65 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the performance of all stocks over the past year, BAC turns out to be only a medium performer in the overall market: it outperformed 59% of all stocks.

Our latest full technical report of BAC contains the most current technical analsysis.

Why is NYSE:BAC a setup?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:BAC is 9:

BAC has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 34.43. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 34.10, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How to trade NYSE:BAC?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.