Bank Of America Is Bouncing: Here's Why It Could Be Ready For Takeoff Soon - Bank of America (NYSE:BAC)

Bank Of America Corp (NYSE:BAC) shares are trading higher after Federal Reserve officials signaled Wednesday they are prepared to raise interest rates at least three times next year in response to rising inflation. The rising rates can increase bank profits by a large margin and are causing banking stocks to trend higher.

Bank Of America was up 2.30% at $44.95 Thursday afternoon at publication.

Bank Of America Daily Chart Analysis

Shares were trading in a sideways channel with resistance near $43 and support near $38 before the stock was able to break above resistance. The stock is now testing this old area of resistance as a new area of support. If this new area of support can hold, the stock may trend higher.
The stock trades below the 50-day moving average (green) but above the 200-day moving average (blue). This shows the stock is trading in a period of consolidation. The 50-day moving average may act as resistance, while the 200-day moving average may hold as support.
The Relative Strength Index (RSI) looks to be bouncing back and sits at 50 on the indicator. This shows that the stock is seeing an equal amount of buying and selling pressure. The RSI has formed higher lows throughout the past couple of weeks and could hint that the stock is ready to push higher.

What’s Next For Bank Of America?

After breaking above resistance in the channel, Bank Of America is becoming more bullish. Bullish traders are looking to see the stock cross back above the 50-day moving average and form higher lows again. Bears are hoping to see the stock fall back below the $43 level and push below the 200-day moving average to take control of the stock. Bears are then looking for a break below the $38 support level.

Photo: Memento Me via Unsplash

BACBank of America Corp

$51.351.29%

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