close icon

Bank of America Breaking Out of a Triangle Pattern

We last wrote about Bank of America in January, shortly after the company’s Q4 2018 report. The market was in a positive mood, sending the share price up to $28.44 at the time of writing. In addition, our Elliott Wave analysis of the situation indicated more strength can be expected going forward.

Nine months later now, BAC is hovering around $31, up 9% since our last update. This is not at all a bad result, but we admit we thought the bulls could achieve it much faster. What took them so long and do they still have the upper hand?

Bank of America breaks out of triangle pattern

The updated weekly chart above sheds some light on the subject. It looks like the reason for the bulls’ slow progress in 2019 was wave (4)’s choice to develop as a triangle correction. Triangles are corrective patterns which consist of five sub-waves and therefore take more time than a simple a-b-c zigzag retracement, for example.

This count suggests that wave (5) has just begun from the bottom of wave “e” of (4) at $27.16. According to the theory, triangles precede the final wave of the larger pattern. Here, the triangle fits perfectly into the larger impulse which has been in progress since the bottom at $4.92 in December, 2011.

If this count is correct, wave (5) is going to lift Bank of America stock to $35 – $36 a share, implying 13-16% upside from the current level. Then, a three-wave correction back to the support of wave (4) near $22 should be expected.

Similar Elliott Wave setups occur in the Forex, crypto and commodity markets, as well. Our Elliott Wave Video Course can teach you how to uncover them yourself!



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Shopify is One of Many Bubble Stocks Out There

It is becoming pretty clear that a speculative bubble is inflating right now. Money-losing companies with market caps in the tens and even hundreds of billions of dollars have become the norm, not the exception. People, who have been in the market for just a couple of months are bragging online about the phenomenal returns…

Read More »

Undervalued Bristol Myers Stock Can Still Get Cheaper

It’s been almost two years since we shared our bullish stance on Bristol Myers stock. Shares in the pharmaceutical major were changing hands for less than $46 in April, 2019. The company had just announced its planned acquisition of Celgene for about $74 billion and Wall Street apparently didn’t like the risks involved. However, the…

Read More »

DraftKings on the Verge of Another 40% Decline

It’s been almost three and a half months since we examined DraftKings stock in October, 2020. The share price was hovering near $57 after a strong run from $10.60 to over $64 in just several months. The regulatory environment in the U.S. seemed to be warming up and many analysts hurried to issue their BUY…

Read More »

AMN Healthcare Stock to Suffer a 2020-Like Drop

AMN Healthcare Services provides workforce and staffing solutions to healthcare facilities in the U.S. The company is relatively small with a market capitalization of less than $4 billion. However, small companies can make for excellent returns if one happens to identify the winners. And indeed, between late-2011 and early-2020, AMN stock from under $4 to…

Read More »

Zoetis Stock Getting Ahead of Itself, Invites Correction

Based in Parsippany, NJ, Zoetis Inc. is an animal medicine and vaccine developer and manufacturer. The company went public in 2013 and has been enjoying steady growth since. With the stock currently above $160 a share, Zoetis holds a market cap of nearly $80 billion. For a profitable and growing company like Zoetis, a rising…

Read More »

CBOE Stock Looking Good After a Record Year

CBOE Global Markets Inc. is an equities, options and futures exchange operator in the U.S. and Europe. The company traces its roots back to Chicago in 1973, when it practically invented options trading in its present form. CBOE is literally part of the very infrastructure of modern financial markets. So it is not surprising that…

Read More »

Novo Nordisk Bulls Have an Elliott Wave Problem

Novo Nordisk A/S is a Danish pharmaceuticals major with a market cap of over $160 billion. People need their medication even in recessions, so the company’s business wasn’t as affected by the 2020 crisis as most other industries. Novo Nordisk remains a top-notch pharma with consistent profits and revenue and no debt whatsoever. And the…

Read More »

More analyses