Shares of Bank of America (BAC) made a new low for its move down Wednesday on the heels of its latest earnings report. Let's check on the charts again.
In our review of Bank of America on June 17 we wrote that "BAC looks like it can correct to the downside in the near-term. The shallower the correction and the shorter it lasts will be clues that further gains can be seen in the weeks ahead. Stay nimble."
In the daily bar chart of BAC, below, we can see that the shares have weakened since early June. BAC has declined toward the $38 area, which may or may not provide some support. The area acted as support in April but things are different now.
The On-Balance-Volume (OBV) line is weakening and the Moving Average Convergence Divergence (MACD) oscillator has crossed below the zero line for an outright sell signal.