$BAC has been in a “Go” trend for several months.
Two weeks ago price hit a new higher high but was quickly followed by a Go Countertrend Correction Icon (red arrow). This told us that price may struggle to move higher in the short term and indeed what followed was a string of weaker aqua “Go” bars as price moved lower. GoNoGo Oscillator fell to test the zero line from above where we looked to see if it would find support. After riding that level, allowing the climbing grid of GoNoGo Squeeze to climb close to a Max, the oscillator has broken down into negative territory and on heavy volume. This is concerning for the health of the “Go” trend. Ideally, the oscillator should remain at or above zero in a “Go” trend. We will watch to see if this negative momentum leads to further price deterioration. For the “Go” trend to survive, the oscillator will need to recapture positive territory.
