In-Depth Technical Analysis of BANK OF AMERICA CORP.

A possible breakout setup was detected on BANK OF AMERICA CORP (NYSE:BAC) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:BAC.

Deciphering the Technical Picture of NYSE:BAC

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

We assign a technical rating of 10 out of 10 to BAC. Both in the recent history as in the last year, BAC has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, BAC did better than 86% of all other stocks.
• BAC is part of the Banks industry. There are 412 other stocks in this industry. BAC outperforms 81% 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 34.15 - 38.49 range, which is quite wide. It is currently trading near the high of this range.

Check the latest full technical report of BAC for a complete technical analysis.

How do we evaluate the setup for NYSE:BAC?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:BAC currently has a 8 as setup rating:

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 37.93. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 36.93, a Stop Loss order could be placed below this zone.

Trading setups like 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.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

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.