This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Trades to Take After the "Obama Crash"

Bank of America

A similar setup is shaping up in shares of Bank of America (BAC - Get Report), it's just not as far long yet.

BofA is forming an ascending triangle, much like the one that Ford broke out of at the end of October. The pattern is formed by a horizontal resistance level and uptrending support -- basically, as shares of BAC bounce in between those two technical price levels, they're getting squeezed closer and closer to a breakout above resistance. For BAC, resistance comes in at $10 -- the breakout above that level is the buy signal for shares.

If you're a regular reader of this column, you know that talking about technical setups in real terms is crucial. After all, patterns like the ascending triangle don't work because of magic or geometry; it all comes down to supply and demand in the market. Resistance at $10 is a place where there's a glut of supply of shares. That's because it's a price where sellers have previously been more eager to sell and take gains than buyers were to keep buying. The breakout above $10 means that buyers have absorbed all of that excess supply at $10, and suddenly BAC doesn't have a barrier in the way of upside anymore. That's when you want to buy.
4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $123.27 -0.09%
BAC $18.15 1.50%
EBAY $28.83 1.80%
F $15.19 3.50%
INTC $29.02 0.22%

Markets

Chart of I:DJI
DOW 17,748.49 +118.22 0.67%
S&P 500 2,104.58 +11.33 0.54%
NASDAQ 5,099.1680 +9.9620 0.20%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs