Elliott Wave View Favors More Upside in BAC

Bank of America (BAC) shows an incomplete bullish sequence from December 25,m 2018 low, favoring further upside. In the short term update below, the rally from March 26, 2019 low ($26.61) to $29.50 unfolded as an impulse and ended wave 1. The stock then pullback in wave 2 to $28.74 as an Elliott Wave zigzag structure. It has since resumed higher again within wave 3. Subdivision of wave 3 is in an impulse structure of a lesser degree.

Up from wave 2 low at $28.74, wave ((i)) ended at $30.32 and wave ((ii)) ended at $29. It still needs to break above wave ((i)) high at $30.32 to validate the view and avoid a double correction. Short term, as far as pullback stays above $28.74 in the first degree, expect BAC to extend higher. If pivot at $28.74 fails, then we can count the entire rally from March 26 low ($26.21) to $30.32 as wave 1. In this case, the stock then can do a wave 2 pullback in 3, 7, or 11 swing to correct the cycle from March 26 low before the rally resumes.

1 Hour BAC Elliott Wave Chart Asia Update