It may be time to buy the stock of Bank of America Corporation.
Resistance is a large group of sellers who are all trying to get the same price for their shares. At resistance levels, there is more supply than demand. This is why rallies end or pause when they reach them.
But when a resistance level breaks, meaning the stock trades higher, it’s a graphical illustration that shows the sellers are gone. They have either finished or canceled their orders.
With this large amount of supply out of the way, the stage is set for buyers to take the shares higher. They’ll need to pay up because there are no longer any sellers offering shares at the level that had been resistance.
Bank of America's stock has broken the resistance at the $42.75 level and a new uptrend may be forming.
