Thursday, April 9, 2009

Massive BAC/ financials breakout


I have been eyeing this potential breakout for weeks. Right when I was almost giving up on this consolidation pattern breaking out, it exploded. I was waiting for $BKX and $DJUSFN to test the bottom end of its trendline to pick up some calls. I just watched this massive move up in price/ volume today on the sidelines...dumbfounded.

It never got to the bottom trendline. Got too fancy for my own good....bleh

5 comments:

Anonymous said...

It looks like an exhaustion gap and a blowoff on heavy volume to me and it still has a ceiling at the 200day average. WFC's chart was even more ridiculous with a huge gap. These stocks can follow through for a few more days but they look like they are setting up for island reversals.

Greenlander said...

While I think the WFC chart looks ridiculous, I dont think we can call this a blowoff top since it was the first big move out of consolidation.

Generally the blow off top will come after its been going up for a bit, not immediately after sitting in a zone for a couple weeks.

$SPX, $INDU, $COMPQ all marked by big volume also so it wasnt just a financial led rally.

J.B.'s Market Tech Analysis said...

Test

Me XMan said...

BAC will see $3 again IMO.

Anonymous said...

nice call on that breakout.

May 15 - Closed out IWM puts for +120% and picked up DAL and HD Jun calls

I'm going to let the market do its thing this week and probably stay away from new positions until Friday unless something very good pop...