Bank Of America Breaks Support In Channel: What Could Happen Next?
Bank of America Corp. (NYSE:BAC) shares are trading higher Thursday, up 2% to $38.88 at last check.
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Bank of America Daily Chart Analysis
- Shares were trading in an upward trending channel before the stock broke below the channel support and moved lower.
- The stock is trading below the 50-day moving average (green), but above the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
- The stock may find resistance near the 50-day moving average, while the 200-day moving average could hold as support.
Key Bank of America Levels To Watch
- The stock recently broke below channel support in the upward trending channel. This means the stock could see a drop off if selling is able to increase.
- The stock looks as though it's attempting to reenter the upward trending channel. The stock looked to have bounced and is trying to continue moving higher once again.
- The Relative Strength Index (RSI) has been trading below the middle line for the past couple months, but looks as though it's now making an attempt to cross above the middle. Right now, there are relatively equal buyers and sellers in the stock with possibly slightly more sellers.
What’s Next For Bank of America?
Bullish traders would like to see the stock rally higher and move back into the channel once again. This would make sure that bulls still have control of the stock and that it may continue to move higher alongside the channel. Bulls want to see the price cross over the 50-day moving average.
Bearish traders would like to see the stock continue to fall and be unable to cross back into the upwards channel. Bears would also like to see the stock cross below the 200-day moving average as well for sentiment to likely turn bearish and for a potential trend change.
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