Courtesy of Jean-Luc Saillard.
I have read multiple articles related the current Bank of America troubles and looking at the chart, we see a scary looking future! Here are the links to the articles I refer to:
Bank of America Death Watch
Is Bank of America at Risk of a Death Spiral
Here is the latest chart of BAC with a Fibonacci retracement coming from the lows of 2009 to the highs of 2010. I have circled in red where the lines acted as resistance and support. Last week, we punched decisively through the 61.8% retracement. This could act as resistance ($9.28) should we experience a rally while the next line of support is at $6.31.
The stock is in technical hell, oversold in just about all the indicators, but amazingly enough, even with last week’s huge move, it has not bottomed out in some indicators yet. This could indicate more pain to come!
I would certainly stay away from that stock while the legal and financial dust clear up!
