The 4 percent upmove today in Bank of America (BAC) after it hit lows not seen since May 2009 (on the way up) so far looks technically significant.

My daily and hourly pattern and momentum work on BAC suggest strongly that the most recent downleg from the 14.00 area ended this morning at new multi-month lows at 11.03. The upside reversal (so far) has the "right look" of a significant upside reversal and recovery rally within the 14.00-11.00 price move.

Initial resistance in BAC resides between 12.20 and 12.50, which will be a very important test for the recovering price structure.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.