Bearish Forecasts in a Volatile Market
The stock market has entered a volatile state. From late January through early April, the S&P 500 has declined more than 10% and many investors are wondering how long the gyrations will last. The truth is, no one really knows.
Artificial Intelligence (A.I.) can help you navigate these choppy waters. Investing in a volatile market is emotional, but A.I. can take the emotion out of the equation and help you make decisions based on data and probabilities — instead of based on gut feelings.
Tickeron’s A.I. has found bearish opportunities in the market as volatility has set-in. Take a look at this prediction it made for Pepsi Co. (PEP) in late January, just as the market started to turn over:
The A.I. noticed a Broadening Top forming in mid-to-late December, and predicted that Pepsi’s stock price would fall from $116 down to around $111. An investor could have taken a short position on Pepsi or sold shares based on the A.I.’s advice — which turned out to be spot-on.
Another A.I. prediction panned out for Bank of America Corporation (BAC). This pattern was more recent, forming from mid-February to mid-March. Tickeron’s A.I. predicted with 42% confidence that BAC would decline through its breakout price down to around $30 a share. Traders who saw the A.I.’s notification (subscribers) could have capitalized on the trade.
How Effective is Tickeron’s A.I.?
Tickeron’s A.I. made accurate predictions about some big names in the stock market. But how often is the A.I. right?
Have a look at this table below to find out. For the Broadening Top (Bearish) pattern, when the A.I. was more than 20% confident that the stock price would decline at least 5%, it was correct 44.25% of the time (2,268 / 5,125). When the A.I. was correct, it delivered an average gain of +12.88% to the investor — a solid metric.
Feeling Bearish in this Market? Start Receiving Notifications of Bearish Patterns from A.I.
The Broadening Top formation generally happens when volatility is high or increasing, and when a stock’s price is moving with high volatility but little or no direction. It indicates growing investor nervousness and indecisiveness. If that’s what you think is happening today in the markets, then following this pattern may be the next move for you.
You can subscribe to Tickeron's Pattern Search Engine for 45 days, absolutely free. In that time, you’ll receive pattern notifications and trade ideas from Tickeron’s A.I. Humans do not have the time or the ability to scan the markets day-in and day-out looking for patterns in stocks, ETFs, mutual funds, and cryptocurrencies. It is simply not possible — unless you get help from algorithms and A.I.
Give Tickeron’s new platform a try to enhance your trading, by using hard data to trade patterns and make investment decisions.
Momentum Indicator for BAC turns positive, indicating new upward trend
BAC saw its Momentum Indicator move above the 0 level on August 14, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 81 similar instances where the indicator turned positive. In of the 81 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
BAC moved above its 50-day moving average on August 12, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for BAC crossed bullishly above the 50-day moving average on August 19, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 10 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BAC advanced for three days, in of 336 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 300 cases where BAC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for BAC moved out of overbought territory on September 03, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 48 similar instances where the indicator moved out of overbought territory. In of the 48 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Moving Average Convergence Divergence Histogram (MACD) for BAC turned negative on September 15, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BAC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. BAC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 28, placing this stock slightly worse than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.357) is normal, around the industry mean (1.315). P/E Ratio (14.836) is within average values for comparable stocks, (12.128). Projected Growth (PEG Ratio) (1.266) is also within normal values, averaging (5.526). BAC has a moderately low Dividend Yield (0.021) as compared to the industry average of (0.041). P/S Ratio (3.772) is also within normal values, averaging (3.417).
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