Bank of America Breaks Its Trend Line: A Bigger Correction Ahead?

Good day to everyone! Bank of America is breaking below the red trend line connected from the April 2025 lows, and that is a pretty dangerous signal. Looking at the subdivisions of the whole pattern from the 2024 lows, I can see the shape of an ending diagonal, so an important top may already be in place.

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If this is a higher-degree correction, we are probably still in its first leg. Some rallies are possible, even back toward the broken trend line and the $53–$57 resistance area, but I think the stock can see more weakness while it trades below the $65.45 high, with $46 as the next major support.

Trade well,

Grega