Annual Trading Forecast on Bank of America (2015)

PUBLISHED: Feb 25 2015 @ 03:35 | Comments (0) | More info about Azeez Mustapha

Bank of America stock (NYSE:BAC) is currently a dicey market and one should stay away until there is a predictable direction. The price made some effort to go north last year (2014), but there was a sharp pullback in the month of January 2015. The price is now trying to recover from the sharp pullback.

The ADX period 14 and the DM+ and DM- are closely intertwined and therefore, do not give any directional signal. The MACD (default parameters), has its histogram above the zero line, whereas the signal lines are still below the zero line. The market does not look sexy right now.

However, the outlook for this year is bullish and the price may continue going upwards in spite of occasional pullbacks along the way. At that time, the ADX period 14 could have gone above the level 30, and the DM+ could have gone above the DM-. The MACD signal lines and histogram should then be above the zero line: with all this leading to a Bullish Confirmation Pattern in the market. The price may test the resistance level at 20.00 this year.

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