BAC is trading around $48 after making a new high for 2021 around $50 last week. Technically trend remains bullish, however there are some signs that make us expect the end of the weekly up trend and the start of a reversal.
Blue lines - bullish channel
The RSI is providing us with an important bearish divergence on a weekly basis. The RSI is not making higher highs as price does. This is a warning and not a reversal signal. Price remains inside the bullish channel but if the bearish divergence is combined with a break below the channel, we will get a reversal signal. The upside potential is limited for BAC stock price. A correction over the following weeks is expected.
