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15.02.2022 09:58 PM
RSI provides key warning for the bullish trend in Bank Of America stocks.

BAC is trading around $48 after making a new high for 2021 around $50 last week. Technically trend remains bullish, however there are some signs that make us expect the end of the weekly up trend and the start of a reversal.

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Red lines- bearish divergence

Blue lines - bullish channel

The RSI is providing us with an important bearish divergence on a weekly basis. The RSI is not making higher highs as price does. This is a warning and not a reversal signal. Price remains inside the bullish channel but if the bearish divergence is combined with a break below the channel, we will get a reversal signal. The upside potential is limited for BAC stock price. A correction over the following weeks is expected.

Summary
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Alexandros Yfantis
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