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The yearly outlook on the Bank of America (NYSE:BAC) for 2013 looks bleak and thus bearish. There has been a sell signal on the chart below. Normally, most market movement in a downtrend has the common result of forcing bulls to smooth their orders, as exit orders are being triggered. The bulls who sustain negativity are the ones that will smooth their trades, while bears can stay in the market. When those who sustain negativity and those who make some gains lose interest in the market, the major outlook can change.
Following some bullish trend on the market, the price began to nosedive (especially starting from the last week). The price has now closed below the EMA 21, and ready to trend further downwards, as the Williams’ % Range period 20 has gone into the oversold territory. This is a bear market, and the price would reach the demand level of 10.00. There is nothing special here, since the southward journey is expected to follow the long-term northward bias. This is a normal relationship between buyers and sellers, for they are all speculators. Two members of the same family have met each other; the tiger’s cub has met the cat.
This article is ended with the quote below:
“If you are wrong and price moves against you, for the novice trader there is pain… The pain is not created by, nor is it in, the market. It is only in the head of the trader.” – Dr. Woody Johnson
