Bank of America Trend May Be Changing as Price Just Breached Above Its 20 Day Moving Average

The Daily View for Bank of America

  • At the time of this writing, BAC’s price is down $-0.04 (-0.1%) from the day prior.
  • This is a reversal of the price action on the previous day, in which price moved up.
  • From a daily perspective, the market looks fairly choppy; clear trends aren’t showing up on the 20, 50 and 100 day timeframes.
  • Of note is that the 200 day changed directions on BAC; it is now pointing down. The moving averages on the daily timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

Bank of America’s hourly price chart is shown below.

BAC

The Daily View for Bank of America

  • At the moment, BAC’s price is down $-1.46 (-3.65%) from the day prior.
  • This is a reversal of the price action on the previous day, in which price moved up.
  • If you’re a trend trader, consider that the strongest clear trend on the daily chart exists on the 50 day timeframe.
  • Regarding moving averages, it should first be noted that price has crossed the 20 day moving average, resulting in them so that price is now turning below it. The moving averages on the daily timeframe suggest a bullishness in price, as the 20, 50, 100 and 200 are all in a bullish alignment — meaning the shorter durations are above the longer duration averages, implying a sound upward trend.

Below is a daily price chart of Bank of America.

BAC

Featured Bank of America Idea From TradingView

Below is a trading comment entitled Buffett, a share buyback and over reserved – roll the puts you may find interesting:

I sell and roll a BAC put vertical monthly. This has been a very good strategy for the options trader. The company has a large share buy back in place.Berkshire Hathaway has been given permission to expand to 15% of the common stock.The company is over reserved and likely with earning tomorrow will…

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