Monday, February 24, 2014

Annual Trading Forecast on Bank of America (2014)

The Bank of America stock (NYSE:BAC) is expected to rally further after the current pullback – for the dominant bias is bullish.  Also, we need to be wary of fundamental effects which can also have impact on the price.

4 EMAs are used for the analysis. They are EMAs 10, 20, 50 and 200 (the color that stands for each EMA is shown at the top left side of the chart). All the EMAs show that the dominant trend is bullish. However, the price is currently pulling back, slashing through the EMAs 10 and 20. The EMA 50 is acting as a barrier to the southward pull, plus the bullish outlook on the market is valid for as long as the price remains on top of the EMA 200. The stock may reach the supply level at 20.00 this year.

Conclusion: No matter what happens here, BAC will go further upwards, and the expectation is valid, as long as there is no Death Cross in the market. When a stock is caught in a serious equilibrium phase, it may not be easy to locate high probability trades and impatient traders can be sliced up when they enter the market at random. There is a need to wait for a clean signal to be confirmed.

This forecast is ended with the quote below:

“Don't brag about your wins. If you avoid getting a swelled head, you'll be able to admit your mistakes and shortcomings more easily, and you won't worry about becoming embarrassed for losing.” – Joe Ross

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders

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