Bank of America Corporation (BAC/NYSE)
09 November 2017, 13:30
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL STOP |
| Entry Point | 26.70 |
| Take Profit | 26.50, 26.25, 26.00 |
| Stop Loss | 27.00 |
| Key Levels | 25.65, 26.25, 26.75, 27.35, 27.90 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 27.40 |
| Take Profit | 27.90, 28.25 |
| Stop Loss | 27.00 |
| Key Levels | 25.65, 26.25, 26.75, 27.35, 27.90 |
Current trend
During last two trading sessions on November, 7 and 8, Bank of America stocks decreased by 3.4% due to the market concerns after new Trump’s statements toward North Korea and the anticipation of new bank profit’s decrease due to the fall of the interest rates.
In Q3 2017 the largest US banks increased the profit from the new debt obligations fee commissions by 6% YoY. Bank of America grew most of all and took 8.2% of the total sum of the whole commission get of 11.6 billion USD.
During the last week Bank of America stocks fell by 2.69% against the growth of S&P 500 index by 0.24%.
Support and resistance
Last week the issuer kept the resistance level of 27.90, which caused the correctional movement. The price is testing the local support level of 26.75. The level of 27.35 is “mirror” resistance. Further correction is not excluded. MACD histogram is set in the negative zone and decreasing, which reflects the strength of sellers. However, it’s better to open the positions from the key levels.
The comparative analysis between the indicators of the company and its competitors suggest the neutrality of its share prices.
Resistance levels: 27.35, 27.90.
Support levels: 26.75, 26.25, 25.65.
Trading tips
If the price is set below the level of 26.75, it’s better to open short positions. Closing profitable positions is possible at the levels of 26.50, 26.25 and 26.00 partially. Stop loss is 27.00.
If the price is set above the “mirror” resistance level of 27.35, the further growth to the levels of 27.90–28.25 is expected. Stop loss is 27.00.
Implementation period: 3 days.
During last two trading sessions on November, 7 and 8, Bank of America stocks decreased by 3.4% due to the market concerns after new Trump’s statements toward North Korea and the anticipation of new bank profit’s decrease due to the fall of the interest rates.
In Q3 2017 the largest US banks increased the profit from the new debt obligations fee commissions by 6% YoY. Bank of America grew most of all and took 8.2% of the total sum of the whole commission get of 11.6 billion USD.
During the last week Bank of America stocks fell by 2.69% against the growth of S&P 500 index by 0.24%.
Support and resistance
Last week the issuer kept the resistance level of 27.90, which caused the correctional movement. The price is testing the local support level of 26.75. The level of 27.35 is “mirror” resistance. Further correction is not excluded. MACD histogram is set in the negative zone and decreasing, which reflects the strength of sellers. However, it’s better to open the positions from the key levels.
The comparative analysis between the indicators of the company and its competitors suggest the neutrality of its share prices.
Resistance levels: 27.35, 27.90.
Support levels: 26.75, 26.25, 25.65.
Trading tips
If the price is set below the level of 26.75, it’s better to open short positions. Closing profitable positions is possible at the levels of 26.50, 26.25 and 26.00 partially. Stop loss is 27.00.
If the price is set above the “mirror” resistance level of 27.35, the further growth to the levels of 27.90–28.25 is expected. Stop loss is 27.00.
Implementation period: 3 days.
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