Market Update Into 7/16: Trading Bollinger Bands® with Multi-Time Frame Analysis
A prepared trader is a profitable trader, and Sunday is a great day to get ready for the week. One way to do that is by checking out one of the most powerful features on TrendSpider, Multi-Time Frame Analysis. This week, we’re focused on Bollinger Band setups using multiple time frames.
Below are three key tickers that we have analyzed and identified interesting trendline/Bollinger Band setups. We believe keeping an eye on these is crucial to watch this week as earnings for bank stocks started off last Friday.
Ticker #1: $C (Citigroup)
- Trading in a falling wedge pattern on the 240-minute time frame.
- Price has respected the upper and lower daily Bollinger bands on the 240-minute chart which are acting as support and resistance areas.
- Price closed down through the MA on the hourly candle suggesting a potential test of the yellow support line below.
Ticker #2: $WFC (Wells Fargo & Co)
- The daily candle continues to trade in a tight upward sloping channel but tested support below on Friday suggesting bears may be taking over.
- If the green support line breaks, we are anticipating a potential test of the lower weekly Bollinger bands.
- If price breaks through the upper yellow resistance zone, look for a potential breakout to the red resistance line above.
Ticker #3: $BAC (Bank of America)
- Bank of America is trading in a very tight range here in a falling wedge formation.
- Notice how the trendline below coincides almost perfectly with the weekly lower Bollinger Band.
- Notice the resistance trendline above coincides almost perfectly with SMA (20) which is the middle blue dotted line on the weekly Bollinger band. Look for a strong breakout if the price can close through this area.
- On the shorter time frame, the 120-minute candle looks to be finding resistance right at the SMA(20) on the daily Bollinger Bands.