Bank of America stock (NYSE:BAC) is currently a
dicey market and one should stay away until there is a predictable direction. The
price made some effort to go north last year (2014), but there was a sharp
pullback in the month of January 2015. The price is now trying to recover from
the sharp pullback.
The ADX period 14 and the DM+ and DM- are closely intertwined
and therefore, do not give any directional signal. The MACD (default parameters),
has its histogram above the zero line, whereas the signal lines are still below
the zero line. The market does not look sexy right now.
However, the outlook for this year is bullish and
the price may continue going upwards in spite of occasional pullbacks along the
way. At that time, the ADX period 14 could have gone above the level 30, and
the DM+ could have gone above the DM-. The MACD signal lines and histogram
should then be above the zero line: with all this leading to a Bullish Confirmation
Pattern in the market. The price may test the resistance level at 20.00 this
year.
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Learn from the Generals of the Markets: Market Generals
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