Bank of America (BAC) continues to show strong bullish momentum after we identified an A-B-C decline into major trendline support around the 46–48 area, where the stock started its first impulsive move higher. This was followed by an A-B-C retracement back toward the April gap, which created the setup for the next leg up.
From there, BAC has entered a strong third wave advance, extending higher after breaking above trendline resistance. The previously discussed Head and Shoulders continuation pattern also reached its projected target near 59, but the structure still leaves room for further upside toward the 62 area as a potential wave 5 target once the next wave 4 pullback is completed.
Near-term support is now located around 58–56. While the bullish trend remains intact, traders already positioned long may want to avoid becoming overly aggressive at new highs and consider tightening stops or taking partial profits as the rally approaches target zones.
Highlights:
• Bullish trend remains intact while above 54
• Head and Shoulders continuation target reached
• Further upside toward the 62 area remains possible
• Existing longs may consider tighter stops near targets
• New buyers may prefer waiting for a wave 4 pullback toward 58–56
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