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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