Bad News for Bank of America (NYSE: BAC) Says Market Timer Frank Kollar
October 9, 2008 (FinancialWire) (By Frank Kollar)
Shares of Bank of America (NYSE: BAC) have taken a precipitous drop in the last few trading days, bringing shares close to a support level that spells do-or-die.
BAC closed Wednesday, October 8 at $22.10 a share, down from $38.13 a share only five days ago. It is just below this level where things get a bit dicey.
There is an obvious support level at $20 a share, the July lows. Just below, at $18.15 a share, is the 2000 bear market low. This constitutes a huge support level, and the loss of eight years of gains.
Our analysis is based on chart actions only but should BAC make a decisive close below $18.15 a share, we could see the start of a decline and fate similar to Wachovia, Fannie Mae, Freddie Mac, etc.
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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