Bank of America's Corp.'s stock has how soared nearly 20% since the election, has nearly doubled off its February low, and has rocketed more than six-fold off its financial-crisis low, but it still has a long way to go before it satisfies the first Fibonacci retracement target. Many chart watchers believe stock trends are governed by the Fibonacci, or divine ratio, of 0.618, which mathematicians have shown to be prevalent throughout nature, including the breading pattern of rabbits, proportions of the human body and how flower petals are arranged. A retracement of 38.2%, which is 1 minus 0.618, is seen by many as the first key retracement target of a strong trend. The others are 50% and 61.8%. For BofA's stock, the 38.2% retracement of the 94% selloff from the Nov. 20, 2006 record close of $54.90 to the March 6, 2009 25-year low of $3.14 is $22.91, which is 13% above current levels. The 50% retracement of $29.02 is 43% above current levels and the 61.8% retracement of $35.13 is 73% away. The stock has run up 21% year to date, while the S&P 500 has gained 7.9%.
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