This is what we discussed last Wednesday…
In the aftermath of this morning's earnings report, Bank of America Corporation (BAC) has climbed in excess of 3%, to a new multi-year high at 14.38.
The most recent upleg from the June 24 low at 12.13 is alive and well, and points still-higher, as BAC is streaking towards a confrontation with the upper trendline of its year-long bullish channel, now in the vicinity of 15.00.
At this juncture, only a sudden downside reversal and decline that breaks 14.00 will trigger near-term sell signals.
With Bank of America Corporation (BAC) bumping up against the upper-boundary (15.00) line of its one-year bullish channel, amidst an upleg pattern from the June 24 corrective low at 12.13, BAC likely will have to rest and digest its near-vertical gains, prior to a resumption of strength that projects to 15.30/40 to complete the June-July advance.
Only a decline that breaks and sustains beneath 14.30 will begin to compromise the prospects of a run to higher-highs.