For the first time all year Bank of America has touched the rising 200 day moving average. The greatest high to low pullback in that time has been 15%. That comes after a 75% rally that I would call the greatest bank stock rally I have ever seen (I started trading in 2009). These are two undeniable signs of long term strength.
The 75% BAC rally broke an 8 year resistance. The next notable resistance is around 34-35 from September 2008.
Obviously there are tons of possibilities of what happens to the stock in time, but the key thing here is we have a solid point of reference area to trade against (23). If the recent range eventually breaks down, the next pivot area lower is the 18-19 level.
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Trade ’em well