All of the action in Bank of America (BAC) off of the Dec 5 high at 5.95 has taken the form of a bullish coil pattern. If accurate, this argues for upside continuation that projects next to a confrontation with BAC's six-month down trendline, now at 6.13.

A hurdle of this level should trigger upside continuation and acceleration towards 7.00. At this juncture, I am only willing to risk a break of the lowest coordinate of the coil (6.64) on an intraday trading basis.

 

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