Bears Appeared - Bank of America

Published on Friday, 27 August 2010 01:27 Written by Christopher Lynn

New York, August 27th (TradersHuddle.com) - Shares of Bank of America Corporation (NYSE:BAC) ended the trading session lower by $0.19 or -1.5% from its previous close. Bank of America's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Bank of America Corporation offers banking, investing, asset management, and other financial and risk-management products and services. The Company has a mortgage lending subsidiary, and an investment banking and securities brokerage subsidiary. Bank of America, the biggest U.S. lender, has a very extensive network of retail banking locations in the U.S. The Bank was founded in 1874 and its headquartered in Charlotte, NC.

Bank of America's current stock range is defined by calculated support defined at $12.42 and by the resistance level at $14.65, which should be used by traders planning their trades.

Traders wanting to establish a position in Bank of America stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Bank of America shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: