While the financial sector as a whole has been underperforming the S & P 500 off the April 2025 low, a number of money center banks have managed to display fairly constructive technical profiles in recent weeks. Today, we'll break down the technical case for Bank Of America (BAC) , with this latest breakout perhaps signaling the beginning of a new impulse move higher. On the daily chart, we can observe two major consolidation patterns off the April low. First, there was a classic bull flag pattern in July and August, with a short-term countertrend pattern of lower highs and lower lows. The breakout in mid-August took BAC back above its 50-day moving average and also above trendline resistance to confirm a new uptrend phase. After reaching up to another major peak in September around $53, Bank of America experienced more of a sideways consolidation, with support coming in at the 50-day moving average as well as the swing low from September. BAC gapped higher in mid-October to retest the previous resistance level, before finally breaking out this week to a new 52-week high. What gives us confidence that this latest breakout could lead to further upside? The weekly chart shows us how the recent upswing is just the latest chapter in a multi-year bullish run off the October 2023 low. It's worth noting that after the selloff in March and April 2025, BAC recovered back to its previous high and then continued higher. With a strong uptrend in place, supported by strong momentum and no real danger signs from a trend-following perspective, we're inclined to treat this chart as "innocent until proven guilty." An improvement in volume readings could definitely validate this most recent breakout in price. In the July to August pullback, the Chaikin Money Flow (CMF) turned negative. This bearish configuration served to confirm the distribution phase, as stronger volume on down days indicated institutions were unwinding positions. After the breakout in mid-August, the CMF turned positive which indicated a new accumulation phase for BAC. The Chaikin Money Flow has been turning higher, and if this indicator could continue above the crucial zero level, we could see much higher highs driven by renewed bullish sentiment for this American banking giant. -David Keller, CMT marketmisbehavior.com DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
