Even My Great Uncle Morty Is Watching This 10 Area on Bank of America
- Posted by ppearlman
- on December 3rd, 2012
This 10 area on $BAC is one of the most watched levels in the market now.
This makes sense as it is a big level for the name having flirted with it in March and then edged close to it 3 or 4 times over the past few months.
Contrarians espousing the watched pot never boils theory might note that because so many are focused on $BAC, it will not do the obvious thing but I think that view risks becoming conventional and therefore contrary to the contrary indicator.
The thing to do here in my opinion is follow price. If $BAC breaks higher on volume and follows through it will have bullish market implications and if it fails will be a negative data point. A close above 9.94 would be a 16 month closing high and an intraday move above 10.10 would be a 16 month high print.
In the meantime, here a few of the cleanest charts posted to StockTwits which capture past behavior of the stock across multiple time frames:
First, Keith Kern with a 1yr daily shows us the level everyone is watching.
Next, Augur provides a 3yr weekly view including potential resistance levels near 11:
Last, Greg Harmon posted this 10yr monthly chart which provides Fib levels from the pre financial crisis top to the near end of the world bottom. 11ish also key here…
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Phil is the interactive editor at Yahoo! Finance. Formerly, he was the executive editor at StockTwits. He is a partner at Social Leverage, LLC and makes early stage investments in web based companies. (More)