Bank of America is starting to look technically fragile on the H4 chart. The structure developing here is a clear head and shoulders formation, with the shoulders marked by green rectangles. This is a classic bearish reversal pattern, but at this stage it remains incomplete.
The key level to monitor is the blue neckline. So far, that support is still holding. Despite the pressure from the right shoulder formation, sellers have not yet managed to push price decisively below this level. As long as the stock trades above the neckline, buyers still have a final opportunity to defend the broader uptrend.
This makes the current zone a decision area. The pattern itself is bearish in nature, but without a confirmed breakdown, there is no active sell signal yet. The market is effectively coiling around support.
A daily close below the blue neckline would activate the head and shoulders structure and generate a proper sell signal. That would shift the bias clearly to the downside and open the door for a deeper correction.
Until that breakdown occurs, caution is warranted. Bank of America is sitting just above a technically sensitive level, and a confirmed move below support could deliver a meaningful long-term signal to sell.