Bank of America is...sorry. [ __ ] is Bank of Montreal. I apologize to my Canadian friends. The most interesting thing about BMO's chart is that it is forming a bull flag pattern.
A bull flag pattern is a situation where a large upward movement occurs. Let me zoom in a little. You have this big upward surge, and then there's a parallel decline. Lower highs and lower lows, and that downward channel runs against the long-term uptrend.
What you look for in a bull flag pattern is a breakout above the upper trend line , and that's what we got a few weeks ago. That breakout was soon followed by a move above the 50-day moving average.
That's where we peaked in mid- September. So, now we have recovered the resistance of the moving average. The trend is positive now, as we have broken above that trend line and the 50-day moving average.
The RSI is rising above 60 , which is an encouraging sign, and relative strength has been quite positive over the past month. So, a nice bullish resolution to the bull flag pattern is emerging.
This is a continuation pattern, which means there could be much more upside than what we have seen in [ __ ].