Sorry Mr Buffett but BAC is going down with all the other financials that I looked up.
On February 11th, 2022, Bank of America ( BAC ) completed an impulse wave up that began in December 2011, specifically Intermediate Wave (5) on the graph in light blue.
According to the guideline of corrective waves, whenever a five-wave move is complete, a correction occurs that typically ends near the terminus of the prior 4th wave. As such, we have observed 5 waves down that completed Intermediate Wave (A) and an ABC correction for Wave (B). While there is no confirmation that this correction (B) is finished, it may have ended.
An essential clue to note is that if the correction is finished, it suggests that the minor Waves C of this Intermediate (B) correction have truncated and failed to reach the minor Wave A extreme. This truncation is an indication of strong underlying selling pressure in BAC .
If this correction is a zigzag correction, the most common Fibonacci ratio in a zigzag is equality between Waves A and C. A = C at approximately $17, which is the exact target from the Depth of corrective wave guideline. This point represents the terminus for the Intermediate Wave (4) in the previous impulse wave.
The second target could also be a 0.618 ratio of $24. Based on this technical analysis , it appears that BAC is going down with all the other financials.
From a technical analysis perspective, it is worth noting that the assessment made in the statement is also valid from a macroeconomic standpoint. Increases in the Fed's fund rate have a direct impact on the housing market, leading to a decrease in mortgage demand, and ultimately causing mortgage rates to fall. This, in turn, could adversely impact financial institutions, as it could lead to a decline in revenues. Therefore, it is crucial to consider the macroeconomic factors that influence the stock market and financial institutions, such as changes in the Federal Reserve's policies, as they can have significant consequences on the performance of individual stocks and the market as a whole.
Please note that the analysis is my personal opinion and should not be considered as financial advice. It is important to conduct your own research and seek advice from a financial professional before making any investment decisions.
On February 11th, 2022, Bank of America ( BAC ) completed an impulse wave up that began in December 2011, specifically Intermediate Wave (5) on the graph in light blue.
According to the guideline of corrective waves, whenever a five-wave move is complete, a correction occurs that typically ends near the terminus of the prior 4th wave. As such, we have observed 5 waves down that completed Intermediate Wave (A) and an ABC correction for Wave (B). While there is no confirmation that this correction (B) is finished, it may have ended.
An essential clue to note is that if the correction is finished, it suggests that the minor Waves C of this Intermediate (B) correction have truncated and failed to reach the minor Wave A extreme. This truncation is an indication of strong underlying selling pressure in BAC .
If this correction is a zigzag correction, the most common Fibonacci ratio in a zigzag is equality between Waves A and C. A = C at approximately $17, which is the exact target from the Depth of corrective wave guideline. This point represents the terminus for the Intermediate Wave (4) in the previous impulse wave.
The second target could also be a 0.618 ratio of $24. Based on this technical analysis , it appears that BAC is going down with all the other financials.
From a technical analysis perspective, it is worth noting that the assessment made in the statement is also valid from a macroeconomic standpoint. Increases in the Fed's fund rate have a direct impact on the housing market, leading to a decrease in mortgage demand, and ultimately causing mortgage rates to fall. This, in turn, could adversely impact financial institutions, as it could lead to a decline in revenues. Therefore, it is crucial to consider the macroeconomic factors that influence the stock market and financial institutions, such as changes in the Federal Reserve's policies, as they can have significant consequences on the performance of individual stocks and the market as a whole.
Please note that the analysis is my personal opinion and should not be considered as financial advice. It is important to conduct your own research and seek advice from a financial professional before making any investment decisions.