Tuesday, 17 January 2017

BAC - cooling financials

Whilst the main market began the week on a moderately weak note, there was more significant weakness in financials. Bank of America (BAC) settled -4.2% @ $22.05. Broadly, the 25/26s look a given.. .whether by late spring.. or the summer.

BAC, daily

BAC, monthly


Friday's daily candle was of the black-fail type, and its not exactly surprising to see that early warning of trouble pan out with significant Tuesday declines.

Broadly though, BAC remains unquestionably hyper-strong. The breakout last Nov' above multi-year resistance of $18, was extremely important. Arguably, its one of the most bullish signals in the entire US equity market.

Mid term target remain the 25/26s... which really aren't that much further to the upside. Its somewhat amusing that no one (that I'm aware of) is yet talking about the $30s.