Technical Analysis – Bank of America stock edges higher but bears are still in control
July 14, 2023 10:27 am
Bank of America (BofA) stock recorded a green candle at yesterday’s session as a very important earnings period gets underway. It has been a tough period for the bulls as the stock remains significantly below the pre-March 2023 highs. However, it is trying to stay above the February 10, 2022 downward sloping trendline and to register a series of higher highs and lower highs. This could help the stock to finally stage a move towards the 31.30 area.
In the meantime, the Average Directional Movement index (ADX) is stuck below its 25-threshold and thus not endorsing the current higher high. More importantly, the stochastic is edging higher and sending a bullish message. However, a bearish divergence appears to be forming as the higher high in the stock has been met, up to now, by a lower high in this indicator.
Should the bulls finally decide to recover some of their current losses, they would try to push the stock towards the 31.30-31.89 area. This range is defined by the 23.6% Fibonacci retracement of the February 10, 2023 – March 24, 2023 downleg, the 200-day simple moving average (SMA) and the December 16, 2022 low, and it is expected to really test the bulls’ determination. If successful, they could consider having a go at the March 12, 2018 high at 33.02.
On the flip side, the bears appear to be more relaxed especially if they manage to pull the stock below the 28.36-29.22 range that is populated by the June 8, 2020 high, and the 50- and 100-day SMAs. Even lower, the March 7, 2018 low at 27.72 is unlikely to trouble them much, giving the bears the chance to move below the 26.28 level and hence to record a new 2023 low.
To sum up, Bank of America stock bulls are desperately trying to record a sizeable upleg amidst a mixed technical picture.
Bank of America (BofA) stock recorded a green candle at yesterday’s session as a very important earnings period gets underway. It has been a tough period for the bulls as the stock remains significantly below the pre-March 2023 highs. However, it is trying to stay above the February 10, 2022 downward sloping trendline and to register a series of higher highs and lower highs. This could help the stock to finally stage a move towards the 31.30 area.
In the meantime, the Average Directional Movement index (ADX) is stuck below its 25-threshold and thus not endorsing the current higher high. More importantly, the stochastic is edging higher and sending a bullish message. However, a bearish divergence appears to be forming as the higher high in the stock has been met, up to now, by a lower high in this indicator.
Should the bulls finally decide to recover some of their current losses, they would try to push the stock towards the 31.30-31.89 area. This range is defined by the 23.6% Fibonacci retracement of the February 10, 2023 – March 24, 2023 downleg, the 200-day simple moving average (SMA) and the December 16, 2022 low, and it is expected to really test the bulls’ determination. If successful, they could consider having a go at the March 12, 2018 high at 33.02.
On the flip side, the bears appear to be more relaxed especially if they manage to pull the stock below the 28.36-29.22 range that is populated by the June 8, 2020 high, and the 50- and 100-day SMAs. Even lower, the March 7, 2018 low at 27.72 is unlikely to trouble them much, giving the bears the chance to move below the 26.28 level and hence to record a new 2023 low.
To sum up, Bank of America stock bulls are desperately trying to record a sizeable upleg amidst a mixed technical picture.
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