I've always like financial stocks although financial stocks might not be the best stocks to trade with. They don't have any nice season to follow accurately and they tend to be very sensitive against the economic data news. I cannot tell any good reason why I like financial stocks but I just do. So I monitor them a lot.
I've taken a look at the stocks of BAC (Bank of America) and find that it finally break out of its major resistance.
On the BAC chart above. We see that the price is being resisted for 4 times at the psychological price point of USD10. At the same time the stocks had form an ascending triangle (although the triangle might not be as useful due to the triangle had been formed for more than 6 months).
I was looking at a breakout in the month of October and November and finally it broke above the price of US10 on 5th December 2012 with a supporting volume of 463 million shares traded on that single day comparing to an average of 150 million shares on normal day.
I long the shares on the next day at the price of US10.48.
It had been a little small consolidation and it broken to new high at 11.36 (closing price on 18th December 2012). This is also partly due to the news on Hope of Fiscal Cliff.
US11.36 was a previous support now turn resistant. This is a critical price point to monitor, a broke again above with high supporting volume will bring in the bull and further push the price up.
At this point if it doesn't hold to the price I shall close off my position and wait for another chance.
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