Bank of America Corp. (BAC/NYSE): general analysis
07 May 2018, 10:30
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL STOP |
| Entry Point | 28.80 |
| Take Profit | 28.20, 27.60, 27.00 |
| Stop Loss | 29.50 |
| Key Levels | 27.00, 28.00, 28.85, 29.65, 30.50, 31.50 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 29.70 |
| Take Profit | 30.50, 31.25 |
| Stop Loss | 29.00 |
| Key Levels | 27.00, 28.00, 28.85, 29.65, 30.50, 31.50 |
Current trend
Bank of America stocks lost 2.1% after the quarter report publication in the middle of April, and now are trading around the 3-months minimum. The company continues to decrease costs, having decreased the efficiency to 60%, which is the lowest value during the last 5 years. The profit of the bank grew to 6.92 billion USD against 5.34 billion due to the decrease of the tax burden from 1.98 billion to 1.48 billion. The Wall Street analysts are concerned upon the real growth of the bank’s profit (despite the tax and accounting optimizations).
During the last week, Bank of America decreased by 2.82% against the fall of S&P 500 index by 0.28%.
Support and resistance
The technical picture is mixed. Now the prices are consolidations. The stocks are testing the local support and resistance levels of 28.85 and 29.65 correspondingly. The instrument can be corrected further. The indicators reflect the strength of sellers: the price consolidated below МА (50) and МА (200); MACD histogram is in the negative zone. However, it is better to open the positions from the key levels.
The comparative analysis of the indicators of the company and its competitors suggests the neutrality of its share prices.
Resistance levels: 29.65, 30.50, 31.50.
Support levels: 28.85, 28.00, 27.00.
Trading tips
Short positions can be opened after the price is set below the level of 28.85. The closing of the profitable positions is possible at the levels of 28.20, 27.60 and 27.00. Stop loss is 29.50.
Long positions can be opened after the price is set above the level of 29.65 with the targets at 30.50–31.25. Stop loss is 29.00.
Implementation period: 3 days.
Bank of America stocks lost 2.1% after the quarter report publication in the middle of April, and now are trading around the 3-months minimum. The company continues to decrease costs, having decreased the efficiency to 60%, which is the lowest value during the last 5 years. The profit of the bank grew to 6.92 billion USD against 5.34 billion due to the decrease of the tax burden from 1.98 billion to 1.48 billion. The Wall Street analysts are concerned upon the real growth of the bank’s profit (despite the tax and accounting optimizations).
During the last week, Bank of America decreased by 2.82% against the fall of S&P 500 index by 0.28%.
Support and resistance
The technical picture is mixed. Now the prices are consolidations. The stocks are testing the local support and resistance levels of 28.85 and 29.65 correspondingly. The instrument can be corrected further. The indicators reflect the strength of sellers: the price consolidated below МА (50) and МА (200); MACD histogram is in the negative zone. However, it is better to open the positions from the key levels.
The comparative analysis of the indicators of the company and its competitors suggests the neutrality of its share prices.
Resistance levels: 29.65, 30.50, 31.50.
Support levels: 28.85, 28.00, 27.00.
Trading tips
Short positions can be opened after the price is set below the level of 28.85. The closing of the profitable positions is possible at the levels of 28.20, 27.60 and 27.00. Stop loss is 29.50.
Long positions can be opened after the price is set above the level of 29.65 with the targets at 30.50–31.25. Stop loss is 29.00.
Implementation period: 3 days.
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