Black lines- Fibonacci retracements
Blue line- short-term resistance
BAC share price completed a major pull back in July around $30. Price bounced strongly as expected towards $37 and has turned back down towards $34-$33. Price has the potential to make a new higher high towards $39. Looking at the weekly chart we remind ourselves where the big decline stopped. At the 61.8% Fibonacci retracement. Bulls are now trying to form a higher low in order to start their attack for a new higher high. Short-term resistance is at $34,50. A break above this level will be the first step towards starting a new upward move.
Blue line- short-term resistance
Red lines- Fibonacci extension targets
BAC share price has so far retraced 38% of the entire decline. There are increased chances that a new upward move will start soon and we would expect price to make at least an equal upward movement relative to the first upward move. This would bring BAC share price towards the 61.8% Fibonacci retracement and the $39-$40 level. Support is at $32,62 and as long as bulls hold this level, they will have hopes for a move higher.Short-term resistance at $34.50 is the first step bulls will need to overcome and the $36.93 level as a second step.
