Bank of America Corporation - BAC will be the company that financial stock investors will monitor the share price of over the next week or two. If you look at the posted chart going back to mid June, you will see that the stock has been establishing lower highs and lower lows. If BAC is to break-out of this bearish trading pattern, it must close above $8.22. This scenario could very well come to fruition given the current erraticness of the markets. If you are a trader, the level to short has two different entry points at either a failure to close above $8.30 (with a tight stop at $8.40) or a break below $7.40 on a closing basis. On the other hand, if you wish to go long for a quick bump, then be careful and only do so if BAC closes above $8.30, with a tight "closing" stop just below wherever the 50-day moving average is at the time. I believe that the markets will be focusing on how financials trade over the next few weeks to get a gauge on how things will pan-out for the rest of the year. However, this point will only prove valid if we don't get any earth-shattering news out of Europe or China - then all "bets" are off.
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