BAC is showing signs of Accumulation. We can first reference the "preliminary supply" (PSY) in the end of 2015 followed by a "selling climax" (SCLX). The SCLX is a sign of a stopping actions and marks the beginning of possible accumulation. The "automatic rally" is the "dead cat bounce" that allows us to identify future resistance. This was followed by several test and re-test.
This April BAC broke out of the range created a "sign of strength" (SOS) and "jump across creek" (JAC). Now we are seeing prices retreat on contracting volume. This suggest that supply remain in strong hands. If volume remains weak; we have confirmation that price are very likely to begin the next phase: MARKUP.
Look for prices to confirm support while "backing up to the edge of the creek" (BEUC). Coincidentl, BEUC is very near the 50% Fibonacci retracement. I'm a buyer at $12.70
Good Luck!
This April BAC broke out of the range created a "sign of strength" (SOS) and "jump across creek" (JAC). Now we are seeing prices retreat on contracting volume. This suggest that supply remain in strong hands. If volume remains weak; we have confirmation that price are very likely to begin the next phase: MARKUP.
Look for prices to confirm support while "backing up to the edge of the creek" (BEUC). Coincidentl, BEUC is very near the 50% Fibonacci retracement. I'm a buyer at $12.70
Good Luck!