And now let’s move to today’s stock of the day, which is Bank of America. Bank of America triggered a meaningful sell signal toward the end of last week, and from a technical perspective, the structure remains clearly negative.
For the past few months, price had been trending higher within a rising channel formation, marked by red trendlines. This channel defined the medium-term bullish structure. However, last week this structure was decisively broken. On Wednesday, the stock opened with a bearish gap, escaping the channel to the downside. That gap was the key technical event, as it confirmed a loss of bullish control and signaled a potential trend change.
Thursday and Friday brought a rebound attempt, but this move lacked follow-through. Importantly, price remained below the lower boundary of the former channel, which keeps the breakout valid and reinforces the bearish bias. From a technical standpoint, as long as price trades below the channel, any upside move should be treated as corrective rather than trend-reversing.
Adding to the negative outlook is the broader market context. US equity futures opened the new week with a sharp drop, suggesting a negative start for the broader stock market. In that environment, Bank of America is likely to remain under pressure and continue moving lower, in line with the sell signal generated last week.
In summary, the technical message is clear. As long as Bank of America stays below the former channel up formation, sentiment remains negative and the path of least resistance points to the downside.