The banks have been a sore spot in the markets for some time now, far underperforming most groups in 2018. Bank of America has had a disappointing performance since peaking in March. The stock is only about 10% off those highs, and the broader market is very close to hitting its own high. But we won’t see too much of a rally if the bank sector refuses to participate.
But as they say, every dog has its day, and that day might come soon for this big bank. Monday created a powerful price bar on big volume, and this name often sees followthrough on such a powerful session. The MACD crossover is bullish, and the RSI slope is steep and impressive. Resistance is ahead around the low 30’s area, but we could certainly see an attack on that level before too long. I like BAC and have placed some calls.
Bank of America (NYSE: BAC) Video Chart Analysis
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About Bank of America
Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small- and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, CDs and IRAs, noninterest- and interest-bearing checking accounts, and investment accounts and products; and credit and debit cards, residential mortgages, and home equity loans, as well as direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans. This segment provides its products and services through approximately 4,500 financial centers; 16,000 ATMs; call centers; and digital banking platforms. The GWIM segment offers investment management, brokerage, banking, and trust and retirement products; and wealth management solutions targeted to high net worth and ultra high net worth clients, as well as customized solutions to meet clients’ wealth structuring, investment management, and trust and banking needs, including specialty asset management services. The Global Banking segment provides lending products and services, including commercial loans, leases, commitment facilities, trade finance, and real estate and asset-based lending; treasury solutions, such as treasury management, foreign exchange, and short-term investing options; working capital management solutions; and debt and equity underwriting and distribution, and merger-related and other advisory services. The Global Markets segment offers market-making, financing, securities clearing, settlement, and custody services, as well as risk management, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1874 and is based in Charlotte, North Carolina.