Why Bank of America Stock Is Headed for a Selloff
This is a thestreet.com article written by Ken Goldberg
NEW YORK (TheStreet) — Bank of America (BAC – Get Report) shares are poised for a downturn, comprehensive technical analysis shows.
The price of this big-bank stock is back at the level that has been troublesome for the bulls, shown in the upper yellow boxes (see chart below), where rally extremes of the past six years have rejected further upside.
If one has no capital invested in Bank of America, would this be the time to initiate long exposure? Not objectively speaking, at least according to the Decision Support Engine.
Meahwhile, stochastics are making lower and lower peaks, diverging bearishly against price, as shown in the lower yellow boxes. The dark red lines show the divergence. This hints of selling by the “smart money” at the expense of the late-joining crowd.
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