Bank of America Short, 3 bearish signs on this stock!
It's been a nice couple weeks of ripping to the upside for Bank of America. Typically after earnings , banking stocks run and dump. BAC has seen nice follow-through, but I don't think these bulls are free and clear. Technically, here I will analyze 3 reasons why I'm short on BAC:
1. BAC is hitting tripple top resistance at the high 30 dollars area. Historically, there have been over 10 times that there has been 10-15% pullbacks from here.
2. BAC is overbought - on the daily chart , we are hitting 70 RSI . This stock has pulled back roughly 10% six times in the past year since hitting this level.
3. Tom Demark Indicator is at a daily 9 sell, meaning the bulls are overextended and are ready for a pullback.
Bonus: 4: on the 5 minute timeframe, there's a nice head and shoulders pattern developing.
1. BAC is hitting tripple top resistance at the high 30 dollars area. Historically, there have been over 10 times that there has been 10-15% pullbacks from here.
2. BAC is overbought - on the daily chart , we are hitting 70 RSI . This stock has pulled back roughly 10% six times in the past year since hitting this level.
3. Tom Demark Indicator is at a daily 9 sell, meaning the bulls are overextended and are ready for a pullback.
Bonus: 4: on the 5 minute timeframe, there's a nice head and shoulders pattern developing.