Daily Stock Report

Bank of America Corp. - (BAC) - October 6, 2021 

As earnings season approaches, banks and insurers have started to attract renewed interest. Bank of America (BAC), for example, has returned to the Green Favored Zone in the SIA S&P 500 Index Report from a summer dip into the yellow zone. Yesterday, BAC finished in 83rd place, up 16 spots on the day and up 81 positions in the last month. 

A major breakout is underway in Bank of America shares. Since June, the shares have been trading between $36.50 and $43.50, consolidating gains made earlier in the year. Corrections were contained above the previous breakout point at the February 2020 peak, a sign of continuing underlying support. In the last couple of weeks, accumulation has resumed with the shares rallying up off a higher low. This week, the shares have broken out to a new all time high and have completed a bullish Ascending Triangle pattern, signaling the start of a new rally phase. 

Initial upside resistance appears in the $50.00 to $50.50 zone where a round number, and multiple measured moves from completed ascending triangles converge, then $57.50 on trend. Initial support moves up to the $43.50 breakout point from $40.00. 

Earlier this year, Bank of America (BAC) rallied through the winter and spring, staging two strong high pole advances and soaring to new highs. Through the summer, the shares paused to digest their gains and formed a symmetrical triangle on higher lows and lower highs which indicated a period of consolidation. This month, the shares have come under renewed accumulation, breaking out of the triangle, clearing their June peak on the way to new all-time highs and completing bullish Double Top and Spread Double Top patters, all combining to signal the start of a new advance. 

Based on horizontal counts, initial upside resistance appears near $49.70, just below the $50.00 round number, and $53.80. A vertical count suggests potential resistance near $61.80. Initial support appears near $40.75 based on a 3-box reversal.  

With a perfect SMAX score of 10, BAC is exhibiting strength across the asset classes. 

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.