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Home Markets Markets Bank of America Corp in MACD Crossover
Bank of America Corp in MACD Crossover PDF Print E-mail
Written by Sam Coventry   
Friday, 30 July 2010 08:31
For those looking for a Buy on a technical basis, Bank of America Corp offers an opportunity.

Bank of America Corp (NYSE:BAC) is a potential Buy target according to the charts.

Delta Index, the spread betting firm, have flagged up Bank of America in their morning technical note.

Based on the observed MACD Crossover Delta suggest a Buy at 1404 with a Stop being placed at 1365. Take profit should be taken initially at 1475 say Delta.

Moving Average Convergence-Divergence Indicators (MACD) work well in trending markets as it is a traditionally lagging indicators which becomes a momentum oscillator.

The “Achilles heel” of this crossover system is that you get a lot of false (i.e. losing) signals in choppy markets.

So investors should take into account the nature of the market at present.

Market volatility


Bank of America Corp shares closed 0.29% higher yesterday 1403, but, on the back of depressed sentiment in Asian and European markets Bank of America futures are lower 0.14%.

Asian markets fell, overlooking strong earnings from some of the region's biggest companies as Japanese shares tumbled on a strong yen and dour economic figures ahead of a key US growth report.

Global electronics giant Samsung reported an 83 percent surge in quarterly profit as sales of panels for flat screen TVs and computer chips boomed.

That followed a flood of earnings reports Thursday from Japanese consumer electronics companies and car makers, nearly of all which showed earnings recovering strongly as demand recovers from the global slump and deep cost cuts take effect.

But new figures from Japan offered a sobering reminder that the world's No. 2 economy remains fragile: The jobless rate rose, deflation deepened, and factories made fewer cars and mobile phones.

The Nikkei 225 stock average dropped 164.94 points, or 1.7 percent, to 9,531.44 as it headed for a second straight day of decline.
Last Updated ( Friday, 30 July 2010 08:34 )