TopOptionAlert
Oct 20, 1:04 AM
$BAC NOV20 52C · still actionable
Zone:
$50.04 to
$50.74
Invalidation: close under
$49.26
Objectives:
$52.64, then
$54.85
The math: up 4.5% to the first objective and 8.9% to the second, against 2.2% risk on the invalidation, about 4 to 1 to the second
Dear friend, think of this swing setup like a big house that took a hard storm last week and is still standing on the same foundation. Bank of America reported on October 14 and the stock fell hard that day to
$49.26, then fell again today to
$50.39, down 1.6 percent, yet buyers held the
$50.20 low well above that storm low. What that means is simple. The selling has slowed down here, the floor sits close underneath us, and if that floor keeps holding, price has room back toward
$52.64 first and
$54.85 next, while a close under
$49.26 would say the foundation cracked and you step aside.
P.S. Watch
$51.53 on Tuesday. It was the high today, and a close over it would show buyers pushing, not just defending the low.
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