NEW BULLISH Plays
Bank of America - BAC - close: 9.47 change: +0.03
Stop Loss: 9.25
Current Gain/Loss: unopened
Entry on October xx at $ xx.xx
Listed on October 18, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 141 million
New Positions: Yes, see below
Why We Like It:
The financial sector has been showing relative strength this past week and the XLF looks like it could breakout past its 2012 highs. We want to look at BAC as bullish candidate. I suspect BAC will perform better than the XLF. You can see from the chart below that BAC has a bullish bias to its pennant-shaped consolidation pattern. This past week has found resistance at $9.60.
I am suggesting a trigger to launch bullish positions at $9.65 with a stop loss at $9.25. Our multi-week target is $10.45.
Trigger @ 9.65
Suggested Position: buy BAC stock @ (trigger)
- (or for more adventurous traders, try this option) -
buy the 2013 Jan $10 call (BAC1319a10) current ask $0.41