Bank of America Corp. (BAC/NYSE): general analysis
Bank of America Corp. (BAC/NYSE): general analysis
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 29.50 |
| Take Profit | 30.75, 32.00, 33.00 |
| Stop Loss | 29.10, 28.25 |
| Key Levels | 26.00, 27.00, 28.25, 29.50, 30.15, 31.30 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 28.20 |
| Take Profit | 26.00, 25.00 |
| Stop Loss | 29.50 |
| Key Levels | 26.00, 27.00, 28.25, 29.50, 30.15, 31.30 |
Current trend
Since the 2-month low of March 25, Bank of America shares have grown by 8.3%, and are currently trading at a discount of 3% to the March 6-month high. The company announced a large-scale modernization program that will affect 2.5K financial customer service centers and 16K ATMs. Next week, April 16, before the market opens, a report for Q1 2019 will be released.
Over the past week, Bank of America shares rose by 5.40%. The S&P 500 index grew by 2.05% over the same period.
Support and resistance
The recent trading sessions were very active, but there was no unidirectional trend observed. At the moment, the issuer is consolidating near the local resistance of 29.50. The nearest support is at 28.25. There is potential for further recovery. Indicators reflect the strength of buyers: the price consolidates above the MA (50) and MA (200); MACD histogram moved to the positive zone. It is better to open the positions from the key levels.
A comparative analysis of company multipliers and competing companies in the industry indicates that #BAC is underpriced.
Resistance levels: 29.50, 30.15, 31.30.
Support levels: 28.25, 27.00, 26.00.
Trading tips
Long positions can be opened after the price consolidates above the level of 29.50. The closing of the profitable positions is possible at the levels of 30.75, 32.00 and 33.00. Stop loss is 28.25.
Short positions can be opened after the price consolidates below the level of 28.25 with the targets at 26.00–25.00. Stop loss is 29.50.
Implementation period: 3 days.
Since the 2-month low of March 25, Bank of America shares have grown by 8.3%, and are currently trading at a discount of 3% to the March 6-month high. The company announced a large-scale modernization program that will affect 2.5K financial customer service centers and 16K ATMs. Next week, April 16, before the market opens, a report for Q1 2019 will be released.
Over the past week, Bank of America shares rose by 5.40%. The S&P 500 index grew by 2.05% over the same period.
Support and resistance
The recent trading sessions were very active, but there was no unidirectional trend observed. At the moment, the issuer is consolidating near the local resistance of 29.50. The nearest support is at 28.25. There is potential for further recovery. Indicators reflect the strength of buyers: the price consolidates above the MA (50) and MA (200); MACD histogram moved to the positive zone. It is better to open the positions from the key levels.
A comparative analysis of company multipliers and competing companies in the industry indicates that #BAC is underpriced.
Resistance levels: 29.50, 30.15, 31.30.
Support levels: 28.25, 27.00, 26.00.
Trading tips
Long positions can be opened after the price consolidates above the level of 29.50. The closing of the profitable positions is possible at the levels of 30.75, 32.00 and 33.00. Stop loss is 28.25.
Short positions can be opened after the price consolidates below the level of 28.25 with the targets at 26.00–25.00. Stop loss is 29.50.
Implementation period: 3 days.
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