Mini Base-like Pattern for Bank of America (BAC)
Companies / Company Chart Analysis Nov 29, 2010 - 04:20 PM GMTBy: Mike_Paulenoff
11.08 held above last week's low at 11.05, which held above the October 26 low at 11.03. Today's subsequent rally to 11.25/30 has carved out a minor base-like pattern since Nov 22, which must hurdle and sustain above 11.33/40 to trigger initial buy signals that will project into the 11.75/80 area initially.
The developing minor base pattern is attached to a much larger potential base pattern that spans the mid-October to mid-November time frame. If the minor base triggers upside projections, then the larger base will become much more of a technical force in the market, and will point BAC towards a test of its Oct-Nov. down trendline, now at 12.10.
If hurdled, this should trigger a run at the 11/09 recovery rally high of 12.76. At this juncture, only a decline that violates the series of lows near 11.00 will disrupt the basing pattern.
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By Mike Paulenoff
Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.
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