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Possible Bullish Inside Day Candle Pattern Detected for Bank of America (NYSE:BAC)

By Amy Schwartz

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Bank of America (NYSE:BAC) based on the price action in the company's shares. Yesterday's price range of $12.35 and $12.72 is within the prior day'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. Traders and investors interested in shares of Bank of America may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

In the past 52 weeks, Bank of America share prices have been bracketed by a low of $10.99 and a high of $18.48 and closed yesterday at $12.70, 16% above that low price. Over the past week, the 200-day moving average (MA) has gone down 0.5% while the 50-day MA has advanced 1.2%.

Bank of America (NYSE:BAC) has potential upside of 49.0% based on a current price of $12.70 and analysts' consensus price target of $18.92. Bank of America shares should first meet resistance at the 50-day moving average (MA) of $13.75 and find additional resistance at the 200-day MA of $15.47.

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.

SmarTrend recommended that its subscribers protect gains by selling shares of Bank of America on June 13th, 2016 by issuing a Downtrend alert when the shares were trading at $13.75. Since that call, shares of Bank of America have fallen 11.4%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bullish am inside day candle Bank of america

Ticker(s): BAC