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


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...


Me XMan said...

BAC will see $3 again IMO.

Anonymous said...

nice call on that breakout.