Apr. 22, 2009
Observation:
1.1. OBV still shows accumulation trend. Institution buying
2.2. MACD turns bearish, BAC may get into correction mode in short term
3. High volume up, low volume. Institutions still have faith in the stock.
4. BAC is weak due to macro economic condition and its own toxic asset problem, thus it failed to touch the next resistance level $12.5-$15. Consequently, it may break the previous support level $7-7.5.
Conclusion: BAC is likely to move into down trend from here and it may drop below $7. 50MA $6.4 becomes a good entry point. Due to positive sign of institution accumulation, I will start to accumulate when it’s below $7.
