The long LONG view on BAC

Posted on Apr 07, 2010 by in Uncategorized

2010-04-06-bacAs is obvious Bank of America is in an 8 month long rectangle.  There is no guarantee that it will not be 12 months or more.  What is certain is that when it breaks out the move will be momentous.  Does anyone think BAC will break out on the downside?  As Damon Runyon said, when the horse has the right to rape pillage and plunder, that’s the way to bet.  Maybe it was Napoleon who said that.  They were both right.

For long term perspective see chart below (5 year):

2010-04-06-bac5yr

As is obvious from this chart heavy accumulation has been occurring.  Now, it is very possible that before it rockets up that holders will attempt to drive it down, so be alert for a head fake.

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