Bank of America (NYSE: BAC) Approaching Strong Support Says Market Timer Frank Kollar
September 16, 2008 (FinancialWire) (By Frank Kollar)
Shares of Bank of America (NYSE: BAC) declined some 21% in Monday’s stock market selloff losing $7.16 in the process. Shareholders have cast a very negative vote with their pocketbooks to the weekend’s announcement that BAC had agreed to purchase Merrill Lynch.
The selling quickly dropped share prices to the 50% retracement of BAC’s entire July rally.
Just below Monday’s close at $26.55, is critical support. The Fib 61.8% retracement is support that often results in a reversal as traders look to pick up a bargain. It can also signal lower lows ahead if the level is decisively broken.
Watch for a bullish reversal pattern at or near $24.95 over coming days. If BAC reverses higher, aggressive traders may have a good shot at profits, using the lows of this correction as a sell stop
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
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