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Sunday, July 10, 2011

BANK of America (BAC) in Downtrend

Let observe on one of the Indices stock counter for Dow Jones which is Bank of America (BAC)

Business Description:

Bank of America Corporation (Bank of America) is a bank holding company, and a financial holding company. Bank of America is a financial institution, serving individual consumers, small and middle market businesses, corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services. Through its banking subsidiaries (the Banks) and various non-banking subsidiaries throughout the United States and in selected international markets, it provides a range of banking and non-banking financial services and products through six business segments: Deposits, Global Card Services, Home Loans & Insurance, Global Commercial Banking, Global Banking & Markets (GBAM) and Global Wealth & Investment Management (GWIM), with the remaining operations recorded in All Other. In April 2011, the Company merged its corporate and investment banking divisions. ( Information From Corporate Information)

1) Trendline - Downtrend (Bearish)
2) Formed lower low -  (Bearish)
3) MACD -  Bearish Crossover and below 0 ( Bearish)
4) RSI - Retracing toward 50% ( Bearish) but in long term look there is a Price Divergence with the RSI showing signs of bullish reversal around the corner..
5) Sto -  Formed Bearish crossover and rebound below 80%( Bearish) Price Divergence with the STO showing signs of bullish reversal around the corner..

6) ADX - super low momentum and bearish ( BEarish )
7) Candle Stick - Abandoned Baby ( Bearish)  What is Abandoned Baby?
8) Chart Earning versus Stock Price where stock price is retracing according to the earning retracement. - Bearish

8 Points

       0 Points

Winner Bear ( Throw down wrestling style)

This counter is bearish  and let wait for a good bullish reversal by breaking the downtrend line which a good indication of the Price Divergence with RSI and STO.
Entry Price 11
Resistance at11.32, 12 and 12.6
Support at 10.64
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