Five Star Stock Watch: Bank of America
When it comes to bank stocks, it doesn't get much bigger than Bank of America.
The stock trades almost 100 million shares per day, on average. To compare, JP Morgan's stock trades an average of 19 million shares a day.
So, there is a strong interest in the performance of Bank of America's stock analyzed below.
The company: Bank of America Corporation
Ticker Symbol: (NYSE: BAC)
Industry: Money Center Banks
Bank of America Corporation provides various banking and financial products and services for individual consumers, small and middle market businesses, institutional investors, corporations and governments in the United States and internationally.
The company operates in the segments of Consumer & Business Banking, Consumer Real Estate Services, Global Markets and Global Wealth & Investment Management.
Please take a look at the nine-month chart of Bank of America below with added notations:
When Bank of America hit $14 as resistance back in May, and then broke above it in July, the stock rallied up to the next whole dollar amount of $15. The same thing happened when the stock broke above $15 in November and hit the recent $16 resistance.
So, a move above $16 should lead to a run up to $17, at minimum. A pullback to $15 should provide support again if the stock's uptrend is still in force.
Bank of America is set to release earnings on January 15, 2014.
No matter what your strategy, or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
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