Published On: Mon, Feb 27th, 2017

Bank of America Corporation: analytical review


Fundamental analysis

Thanks to Donald Trump’s statements during the election campaign on the reduction of the regulatory framework in the field of financial services, coupled with the expectation of increasing interest rates, Bank of America shares have risen by 45% since November 2016. Despite the significant growth, the stock was trading with a factor of 1.01 to the carrying value, with the shares of direct competitors trading with a factor of 1.50 to the carrying value. Is the current price fair? It’s hard to judge. However, large investors would recommend to keep the shares of Bank of America in the long term. In the short term, there is a potential growth due to the upcoming Trump’s speech.

Last week Bank of America shares fell by 1.42%. The S&P500 for the same period increased by 0.10%.

Key levels

The previous trading session for #BAC was very active. The instrument opened with a gap down and continued to decline, until it has found support at 24.00. At the moment, the technical picture is controversial: 50MA consolidated below 200MA; MACD histogram is in the positive zone and continues to rise.

Support levels: 24.00, 23.50.

Resistance levels: 24.30, 24.60, 24.90.

Trading tips

If the price consolidates above 24.30, long positions could be opened with the targets within the range of 24.80-25.00 and stop-loss at 24.05.

If the price consolidates below the support level of 24.00, it would be possible to open short positions with the targets in the area of 23.50-23.00. Stop-loss should be placed at the level of 24.25.

Forex Analysis

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