Chart of the Day: Bank of America Looks a Bit Tired
The stock has been overbought while going sideways, but a retreat might set up a better entry point.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
Building a nice, long base is a process that eventually can produce some solid results.
If that base is higher and in the direction on the previous trend, the odds favor a strong breakout eventually with a move to an even higher level. Yet, a shakeout of the bulls can often provide a nice spot to get on board if we are looking for an entry. Remember, the best trends barely ever give you a chance to get on board.
Such is the case with Bank of America BAC, which is flirting with highs printed back in February but looks a bit tired at current levels.
The base-building process for BAC has been solid and on good turnover. The flat base is required before carving out the right side of the base, which would eventually consist of higher highs and higher lows. The recent crossover of moving averages is bullish, but the MACD is turning down (bearish) as is money flow, nothing serious however, but certainly something to watch carefully.
What might be a better entry than current levels? Perhaps a move back to the $42 level would be ideal, and just before the volatile earnings season begins after the July 4 holiday.
We like Bank of America in TheStreet Pro portfolio and rate it a one, or buy at anytime.
More Pro Portfolio
- We're Initiating a Position in This CoreWeave, OpenAI, ServiceTitan Play
- Weekly Roundup: Widening Our Lead and Adding a New Position
- Chocolate Inflation, a Tear in My Non-Alcoholic Beer, AI Everywhere and More News for Investing
At the time of publication, TheStreet Pro Portfolio was long BAC.
