Journal Entry: Ok I have updated the other two BAC
idea's I have published however I wanted to draw in some updates therefore I am publishing a new updated idea to track along with the rally. After the new Tax Reform there is a lot of reason for a lot of stocks to rally, especially financials, according to many news articles which can be found on my twitter feed and as well I will include some of them below. Back to the analysis at hand, it looks like today gapped up for close to a $1 move to the upside, and the day closed with a small pullback into the close. After looking at the intraday charts which I can also include below I confirmed that this is most likely a temporary pause and price will continue to rally tomorrow and is also set up for another potential gap up in the morning. Historically speaking BAC
is known to gap up multiple times in an uptrend, this stock likes to gap/trade pre-market. The temporary pause may be due from a slight period of consumer surplus where traders started adding to their position ahead of market value, it could also potentially be other traders cutting their losses from being trapped in a weak position over the weekend, although I figured that would have happened earlier in the morning. Price is below a major demand line which I will include the updated detail below, it was a significant turning point for price on the monthly time frame, this I believe is a good indication that buying pressure will continue to move the market higher through any present resistance. I adjusted a few targets above, however as I have stated on the other idea's I think that this rally could be so long that these may just be minor checkpoints along the way (orange lines with blue targets). More or less I think financials are going to be upgraded largely due to the new tax reform; major corporations are getting a huge tax reduction from 35% down to %20. In my opinion I think this was a great reform for the US economy and in essence this should increase the nations GDP and reduce unemployment. Thank You, God Bless.
RVGI I have set a faster setting of 5 and found it is forming an ascending triangle
momentum pattern that may be due to breakout bullish
as price trades this week. The breakout may happen this week or next week.
looks like it is bouncing on the 0 line and is still heavily bullish
. Based on this it looks like this uptrend is just starting to get "into swing" with the lines spaced well apart and a lot of "room to run" before nearing any pivotal values.