Bank Shot

  • March 12, 2001
  • Duke Heberlein

Bank of America
(
BAC |
Quote |
Chart |
News |
PowerRating) is pulling back to the area of its previous
breakout from an inverted head-and-shoulders pattern. The stock has several
volume spikes during its 37% rise from the 40 level to 56 during its December to
end of January run.

 

 

 

This action is also tracing out a mini cup and handle just under
the recent high, when you combine this pullback with the inverted head and
shoulders. Another reason I like this stock is that it has risen in the face of the downtrending S&P cash index.

 

 

Stocks that perform this bullish type of action in a divergent
manner from the overall market often make good on setups when a bounce or
stabilization occurs.

Until tomorrow,

Duke