Market Review

Bank of America Corp. (BAC/NYSE): general review

Current trend

Shares of Bank of America are trading at a 5-month high, showing a strengthening since the end of last week amid an increase in the bank's rating by the Moody's Investors Service. Since the beginning of the year, the emitter's quotes rose by 19.6%, helped by the publication of a strong quarterly report in mid-January.

In the previous week, the stock of Bank of America grew by 3.19%. S&P500 went up by 2.18% within the same period.

Support and resistance

The emitter is still traded in prolonged flat. Over the past month, the company's shares have formed the following key levels of support and resistance: at 28.70 and 29.75, respectively. The instrument has the potential to further growth.

Indicators show the strength of the buyers: the price has consolidated above MA(50) and MA(200), and MACD histogram started to grow. Positions are to be opened from key levels.

Comparing the company's multiplier with its competitors in the industry, we can say that #BAC shares are undervalued.

Support levels: 28.70, 27.85, 27.00.

Resistance levels: 29.75, 30.70, 31.45.

Trading tips

If the price consolidates above the resistance level of 29.75, one should expect the company's shares to grow. Potential profits should be locked in by orders at 30.75, 31.75, and 32.50. Stop loss – 28.75.

If the price consolidates below 28.70, one may consider selling #BAC. The moving potential is aimed at the area of 27.00-26.00. Stop loss – 29.70.

Implementation period: 3 days.

Scenario

Timeframe Intraday
Recommendation BUY STOP
Entry Point 29.75
Take Profit 30.75, 31.75, 32.50
Stop Loss 29.40, 28.75
Key Levels 27.00, 27.85, 28.70, 29.75, 30.70, 31.45

Alternative scenario

Timeframe Intraday
Recommendation SELL STOP
Entry Point 28.65
Take Profit 27.00, 26.00
Stop Loss 29.70
Key Levels 27.00, 27.85, 28.70, 29.75, 30.70, 31.45

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