TopOptionAlert
Oct 22, 7:03 PM
$BAC NOV20 53C · still actionable
Zone:
$50.66 to
$51.38
Invalidation: close under
$50.20
Objectives:
$54.85, then
$58.25
The math: up 7.5% to the first objective and 14.2% to the second, against 1.6% risk on the invalidation, better than 8 to 1 to the second
Dear friend, think of this swing setup like a big sturdy house that got marked down after a loud inspection and is now sitting quietly while buyers walk through it again. Bank of America reported on October 14 and price fell from near
$53.98 to
$50.77 the next day, and today it held the
$50.20 low and worked back to
$51.02 even while the broad market slid. What that means is simple. The selling after the report looks tired, readings near 26 say it has been pushed far, and if that low keeps holding there is room back toward the shelves overhead. If price closes under
$50.20 the bounce idea is wrong and you step aside, plain and simple.
P.S. Watch
$51.21 on the next push. It was the high today, and a close over it would show buyers are pushing, not just defending the low.
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