Bank of America is our focused stock that we believe has a bullish potential to break above 16,20-30$ and test 17$ in the long run. Prices have broken out of the downward sloping channel that started just below the 16$ price level. Prices have started an upward move at 15.06$ and at the same time they managed to break above the Ichimoku cloud resistance levels. Currently this stock is making a corrective back test of the broken resistance and we believe that soon we will see another bullish move that could produce a new higher high near 16.40-50$.
BAC should confirm our bullish view when prices break above 15,87$. As long as prices trade above the 15$ price level, the bullish scenario remains valid and intact.
The price channel as shown in the above chart consists of current price action and provides support as trend remains weak and unconfirmed bullish. We should soon expect prices to move higher after reaching the 38% Fibonacci retracement. Our first target is 16,50$ and second target near 17$. We are bullish BAC and we expect the higher highs and higher lows pattern to continue.
As always, thank you for taking the time to catch up on my thinking.