Bank of America BAC got punished on its earnings report. With headlines floating around like space "Is Bank of America At Risk of a Death Spiral?", you just know that the remaining holders were scared into selling and all of the sellers have sold. That's the problem with the financial media they are always late. The fact is that Bank of America has already had it's death spiral. And you can see what I mean by looking at the volume bars in July at the bottom of the chart.
Notice how the bars all turned red in the July with steadily increasing volume. In fact the selling volume went parabolic topping 300 million shares going into the earnings report. Now look at the price action for the same period. You can see how it mirrored the volume and bottom out at $9.40 at the same time the selling volume topped out. Also the stochastic has turned up with the red line pulling away from the blue line.To me this looks like a washout.
Was $9.40 below are Bank of America? I don't know but to me $10 seems to be a line in the sand. We have the stop at $9.40 cents that is the 52-week low and it limits our loss to $82.
No comments:
Post a Comment