At the beginning of March our analysis on BAC stock price warned bulls that price had broken out of a bullish channel and was providing a reversal signal. Our view was bearish expecting more downside to follow.
Blue lines - bullish channel (broken)
In our previous analysis we warned that price was vulnerable to a move lower towards $35-$37. This week's low so far was just above $38. Trend remains bearish. There is no sign of a reversal. Trend is expected to remain bearish and price to continue lower inside our target area. The entire upward movement from $18 is over and we are just now approaching the 38% Fibonacci retracement of the entire rise.
