TopOptionAlert
Oct 19, 12:06 PM
$BAC NOV20 53C · still actionable
Zone:
$50.87 to
$51.59
Invalidation: close under
$49.26
Objectives:
$54.38, then
$59.05
The math: up 6.1% to the first objective and 15.3% to the second, against 3.8% risk on the invalidation, about 4 to 1 to the second
Think of this swing setup like a good bank that just had a rough earnings week and got marked down while the vault stayed full. Bank of America reported on October 14 and missed by a little, and price fell 5.7 percent in five sessions to close Friday at
$51.23, yet buyers held the
$51.21 low and readings near 24 say the selling looks tired, not fresh. What that means is simple. The floor at
$49.26 sits close below us, and overhead the 20 day average at
$54.38 waits first, with the 50 day average at
$59.05 next if the bounce builds. If price closes under
$49.26 that floor has given way and you step aside, plain and simple.
P.S. Watch
$52.64 on Monday. It was the high on Friday, and a close over it would show buyers pushing, not just defending the low.
0 replies
