When the Price of Invesco Municipal Bond Portfolio BAB Talks, People Listen

October 02, 2022, 23:00 pm ET, BY Allen K.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

This is not EF Hutton, but it could be more #powerful.  A picture speaks a thousand words, they say, and the #priceaction of Invesco Municipal Bond Portfolio (NYSE: BAB) tells an important story.  The movement tells us where investors perceive value, or the lack of it, and if we pay attention we can capture opportunity.  The data below for BAB can be used as an example, and demonstrate how to do this for other stocks too.  This data was current at the time of publication, but it is not updated in real time here. If you want real time updates, or data on a different stock, please get one here Unlimited Real Time Reports. 

Longer Term Trading Plans for BAB

• Buy BAB slightly over 25.00 target 26.06 stop loss @ 24.93 Details

The technical summary data tells us to buy BAB near 25.00 with an upside target of 26.06. This data also tells us to set a stop loss @ 24.93 to protect against excessive loss in case the stock begins to move against the trade. 25.00 is the first level of support below 25.65 , and by rule, any test of support is a buy signal. In this case, support 25.00 would be being tested, so a buy signal would exist.

• Short BAB slightly under 26.06, target 25.00, stop loss @ 26.14 Details

The technical summary data is suggesting a short of BAB as it gets near 26.06 with a downside target of 25.00. We should have a stop loss in place at 26.14though. 26.06 is the first level of resistance above 25.65, and by rule, any test of resistance is a short signal. In this case, if resistance 26.06 is being tested, so a short signal would exist.

Swing Trading Plans for BAB

• Buy BAB slightly over 25.76, target 26.06, Stop Loss @ 25.69 Details

If 25.76 begins to break higher, the technical summary data tells us to buy BAB just slightly over 25.76, with an upside target of 26.06. The data also tells us to set a stop loss @ 25.69 in case the stock turns against the trade. 25.76 is the first level of resistance above 25.65, and by rule, any break above resistance is a buy signal. In this case, 25.76, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short BAB slightly near 25.76, target 25.40, Stop Loss @ 25.83. Details

The technical summary data is suggesting a short of BAB if it tests 25.76 with a downside target of 25.40. We should have a stop loss in place at 25.83 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 25.76, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for BAB

• Buy BAB slightly over 26.06, target 27.09, Stop Loss @ 26 Details

If 26.06 begins to break higher, the technical summary data tells us to buy BAB just slightly over 26.06, with an upside target of 27.09. The data also tells us to set a stop loss @ 26 in case the stock turns against the trade. 26.06 is the first level of resistance above 25.65, and by rule, any break above resistance is a buy signal. In this case, 26.06, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short BAB slightly near 26.06, target 25.00, Stop Loss @ 26.12. Details

The technical summary data is suggesting a short of BAB if it tests 26.06 with a downside target of 25.00. We should have a stop loss in place at 26.12 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 26.06, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

BAB Ratings for October 02:

Term →	Near	Mid	Long
Rating	Neutral	Weak	Weak
P1	0	0	25.00
P2	25.58	25.40	26.06
P3	25.94	25.76	27.09

Support and Resistance Plot Chart for BAB

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