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I’m sure you’re familiar with my obsession over Bank of America (BAC) by now. Its where I do my banking, and I really think the true stock value of the company is much higher than where it sits even today… 30% higher from my initial recommendation.
Slowly and slowly it looks like many financials are beginning to either pay off the “government assistance” they received or they are leading in the steps to the right direction.
Bank of America is even going as far as to say they really didn’t get much of anything. Poof… its gone. Either way you look at it, thats a load off the shoulders of Bank of America.
Both short-term and long-term Bank of America is working on the basically the same resistance line. A great way to get 2 birds with 1 stone if you ask me.
In the 3 month chart, you can see that the MACD is looking to cross back over the red line as it closes in on the resistance. Learn about MACD.
Zooming out 1 year, you can see that same resistance line spans out even further, which makes a potential break here even that much more significant.
Long story short, Bank of America has a lot of news and technicals in its favor; however, that could all get wiped away pretty quickly if the stock gets rejected by the resistance.
So either get ready to meet new levels on break, or look to buy at lower levels on bounce down. Eventually this stock should easily find its way to at least $27, which is only half of what it once peaked at.