OK, sorry to start the day with such a tallllllll chart, but I've got to make this point.
Bank of America has been of great interest to me. When bank stocks were really in the dumper, I pointed out Bank of America would probably fight its way to the underside of its 23.6% Fibonacci retracement line. BAC had plunged as low as $2.52 on February 20 of this year, which meant that a 300% gain could have been in store (and it was, plus some more).
The Fibonacci retracements were drawn from two price extremes – – one on October 20, 1987 (the lows of the '87 crash) and the other on October 11, 2007, almost twenty years later to the day.
The 23.6% retracement of this huge span was $11.62, as I mentioned. With my "premature anticipation" I started shorting at $10.50, and shame on me for not being more patient (and double-shame on me for not buying when it was cheap!) But that's water under the bridge, isn't it?
Anyway, here's the payoff:
The high yesterday? $11.58. Four pennies less than the retracement level, and based on a drawn object from over 21 years ago! Wow! Anyway, I'm short B of A (I shorted more yesterday, at more sensible levels).
