Bank of America (BAC) has been in a nice uptrend since 2012 going from $5.50 to $17.00.
GAP REVIEW
On April 28, 2013, BAC gapped down and broke the uptrend line that it established for 2012-2014. The gap down was more than $1.00 on downside action. This gap down put the stock on short watch because the uptrend was broken and it is in hunt for solid demand. This action forced out any long players from the entire move up for the last two years 2012-2014. Another negative the gap down forced price action below the daily 200 moving average.
KEY LEVEL
Supply exists into $15.45 from the gap day high and has key demand levels at $13.60 and $12.00.
THE TRADE
Short any bounce into $15.20 with a stop of $16.00. Targets would be $13.60 and $12.00
Disclosure: Swing Newsletter Subscribers are short BAC from $14.85 on 5/6/2014
