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.
What is the technical picture of NYSE:BAC telling us.
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.
Taking everything into account, BAC scores 8 out of 10 in our technical rating. Although BAC is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.
- The long and short term trends are both positive. This is looking good!
- BAC is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
- 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 64% of all stocks.
- BAC is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.
Looking at the Setup
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. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 38.16. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 37.18, a Stop Loss order could be placed below this zone.
How can NYSE:BAC be traded?
A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.
Of course, there are many ways to trade or not trade NYSE:BAC and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.
Our Breakout analyzer lists more breakout setups and is updated daily.
