Bank of America Corporation : End of the technical recovery
By Maxime Nonglaton
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$8.07 | $0 | $8.5 | +100% |
The upward trend seems to be run out of steam. The downward trend could recover.
From a technical viewpoint, the proximity of the USD 8.3 medium-term resistance limits the upside potential on the stock. The uptrend in the short term could be stopped by this level and prices could decrease sharply in the coming sessions. Technical indicators, as the resistance trend line, show an overbought situation that reinforces this bearish scenario. Thus, there is a higher downside potential than upside.
Therefore, the proximity of mid-term resistance suggests a correction phase in the coming sessions. The most offensive will open a short position to target a return on the USD 6.8 support. It should protect the position with a stop loss set above the USD 8.3 resistance.