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Possible Bearish Inside Day Candle Pattern Detected for Bank Of America (NYSE:BAC)

By Amy Schwartz

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Bank Of America (NYSE:BAC) based on the price action in the company's shares. Today's price range of $28.59 and $28.87 is within yesterday's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Owners of Bank Of America may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Bank of America Corporation accepts deposits and offers banking, investing, asset management, and other financial and risk-management products and services. The Company has a mortgage lending subsidiary, and an investment banking and securities brokerage subsidiary.

Bank Of America share prices have moved between a 52-week high of $33.05 and a 52-week low of $25.81 and are now trading 12% above that low price at $28.78 per share. Over the last five market days, the 200-day moving average (MA) has remained constant while the 50-day MA has declined 0.6%.

Potential upside of 20.9% exists for Bank Of America, based on a current level of $28.78 and analysts' average consensus price target of $34.80. The stock should find initial resistance at its 50-day moving average (MA) of $30.42 and further resistance at its 200-day MA of $30.48.

SmarTrend recommended that its subscribers protect gains by selling shares of Bank Of America on September 14th, 2018 by issuing a Downtrend alert when the shares were trading at $30.25. Since that call, shares of Bank Of America have fallen 4.5%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bearish inside day candle Bank of america

Ticker(s): BAC