BAC Testing Channel Resistance - Exhausted? Or First Leg of B/O?
A longer term channel (darker blue) as well as the shorter term channel are both being tested at the very strong resistance.
Also, there is a strong horizontal price magnet at 16.20, probably will hold.
Obviously we saw on Thursday the very strong bull spike. Price action would probably say this is an exhausted bull.
However, we may also get a short term trading range (barb wire?) and then it could bounce off the 16.20 level to the upside, in which case we'd have a bull b/o with a probable sell off around 16.50 (TR) and 18 (swing high).
I would sell a close 1 tick below Friday's low (16.05), but a lot of traders may decide to short once it breaks 16.
We'll just have to wait
UPDATE 8-26: Doji top at a resistance slightly above the one drawn. Also, the resistance is at about a 61.8 level and approaching the pitchfork median line
Also, there is a strong horizontal price magnet at 16.20, probably will hold.
Obviously we saw on Thursday the very strong bull spike. Price action would probably say this is an exhausted bull.
However, we may also get a short term trading range (barb wire?) and then it could bounce off the 16.20 level to the upside, in which case we'd have a bull b/o with a probable sell off around 16.50 (TR) and 18 (swing high).
I would sell a close 1 tick below Friday's low (16.05), but a lot of traders may decide to short once it breaks 16.
We'll just have to wait
UPDATE 8-26: Doji top at a resistance slightly above the one drawn. Also, the resistance is at about a 61.8 level and approaching the pitchfork median line
