Today we've chosen to take a look at the renko chart of Bank of America Corp. (NYSE:BAC). This type of chart is not commonly used by beginner traders, but as you will see here, it can be very interesting. Renko charts are constructed by plotting a number of boxes, also known as bricks, onto a chart. Each unfilled block is used to illustrate a rising price, while the dark bricks represents a falling price. It is important to note that this type of chart only deals with price movement and is not contingent on the passage of time. Technical traders use this chart to identify major trends and key support/resistance levels by filtering out day-to-day price moves.
As you can see from the chart below, this stock is about to test the support of the $47 level. Traders will watch for a white brick to appear near this level because it will confirm the strength of the support and will signal a likely move higher. We will maintain a bullish outlook on this stock until the price closes below the $47 mark.