Berger: Why I Bought Bank Of America Shares This Week
The banks as a group –- see the KBW Bank Index (NASDAQ: BKX) in blue -- “have shown relative strength all year versus the broader stock market [and] continue to be supported by a slowly rising interest rate environment,” he said.
Source: Serge Berger.
Bank of America, in particular, “has shown good relative and absolute strength within this strong group and looks poised to rally more in coming weeks.”
As seen in the weekly chart above, the stock has been stuck in a range over the past year and a half or so. Although the shares are now somewhere near the upper end of this range, Berger sees room for growth.
Now, looking at Bank of America in relative terms, compared with the KBW Bank Index (in black, this time), the stock is also outperforming its peers, which are, on average, performing strongly as well.
Finally, looking at the daily chart, the stock looks supported and, according to Berger, it might be able to move towards the $17.50-$18 area.
Shares of Bank of America rose nearly about 2.4 percent on Friday, closing at $17.18.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.