Bank of America shares are trading at a 1.9% discount to a 52-week high of December 27th. The growth of the issuer’s quotes exceeded 5% since the end of November. The following week, January 15, before the market opens, the company will report for the past quarter. Wall Street expects a 2% YoY decline in revenue to $22.2 billion from a 1.4% YoY drop in adjusted earnings per share to $0.69. Over the past week, Bank of America shares fell by 1.71%. The S&P 500 index for the same period increased by 0.52%.
Investors are still encouraged by easing tensions between Iran and the United States. On Wednesday, US President Donald Trump made it clear that there would be no military conflict between the countries. And yesterday, the House of Representatives of Congress adopted a resolution restricting the president’s rights to wage war with Iran. Now Donald Trump will be able to start it only with the permission of Congress. Regarding domestic economic news, we note the comments of the deputy head of the Fed, Richard Clarida, who said that the monetary policy of the regulator is now optimal, but if necessary, it can “show flexibility” in relation to interest rates.
Oil quotes today are stable and traded within narrow ranges. Prices continue to be pressured by detente in the Middle East. After US President Donald Trump made it clear that there would be no military action against Iran, Congress passed a law restricting the president’s right to wage war, which made the conflict even less likely. In the evening, market participants are awaiting the Baker Hughes report on active oil rigs in the US. The last time, the number of rigs decreased from 677 to 670 units. The continuation of this trend may support prices.
Support and Resistance
The company’s shares stabilized after a long rally. The issuer is currently consolidating. #BAC quotes are testing local support and resistance levels of 34.40 and 35.70, respectively. In the near future, technical correction of the trading instrument is not ruled out. The signals of the indicators differ: the price fixed above MA (50) and MA (200); MACD began to decline. It is better to open the positions from the key levels. A comparative analysis of the multiples of the company and competing companies in the industry indicates the neutrality of #BAC.
Resistance levels: 35.70.
Support levels: 34.40, 33.60, 32.50.
Pivots
Pivot Classic Fibonacci Camarilla Woodie DM
S3 28.16 31.33 34.35 30.60 —
S2 31.33 32.54 34.64 31.57 —
S1 33.27 33.29 34.93 33.77 33.89
P 34.50 34.50 34.50 34.74 34.80
R1 36.44 35.71 35.51 36.94 37.06
R2 37.67 36.46 35.80 37.91 —
R3 40.84 37.67 36.09 40.10 —
Bank of America Trading Ideas
Long positions may be opened after the price consolidates above the level of 35.70. The closing of the profitable positions is possible at the levels of 37.00, 38.20 and 39.50. Stop loss – 34.40. Short positions may be opened after the price consolidates below the level of 34.40 with the targets at 32.00–31.00. Stop loss – 35.70. Implementation period: 3 days.
Bank of America Stock Recommendations
Jan-09-20 Initiated DA Davidson Neutral $36
Jan-07-20 Downgrade UBS Buy → Neutral $34 → $36
Jan-06-20 Upgrade Barclays Equal Weight → Overweight $43
Jan-03-20 Downgrade BMO Capital Markets Outperform → Market Perform $37
Oct-29-19 Downgrade Societe Generale Hold → Sell
Oct-28-19 Upgrade Odeon Hold → Buy
Oct-22-19 Upgrade Atlantic Equities Neutral → Overweight
Sep-06-19 Downgrade Keefe Bruyette Outperform → Mkt Perform $36 → $29
Aug-29-19 Downgrade Raymond James Outperform → Mkt Perform
Jul-26-19 Upgrade Keefe Bruyette Mkt Perform → Outperform $32 → $36
Jun-18-19 Upgrade BMO Capital Markets Market Perform → Outperform
Apr-30-19 Downgrade Atlantic Equities Overweight → Neutral
Apr-17-19 Downgrade Jefferies Buy → Hold $32
Apr-04-19 Initiated HSBC Securities Hold $29
Jan-09-19 Upgrade UBS Neutral → Buy
Jan-09-19 Upgrade Edward Jones Hold → Buy
Jan-07-19 Downgrade Macquarie Outperform → Neutral
Jan-02-19 Reiterated Barclays Equal Weight $37 → $34
Jan-09-18 Downgrade Societe Generale Buy → Hold
Jan-02-18 Reiterated Barclays Equal Weight $28 → $35
Bank of America 1 Day Moving Averages
Name Value Action
Exponential Moving Average (5) 34.97 Buy
Simple Moving Average (5) 34.87 Buy
Exponential Moving Average (10) 34.99 Buy
Simple Moving Average (10) 35.13 Sell
Exponential Moving Average (20) 34.75 Buy
Simple Moving Average (20) 34.96 Buy
Exponential Moving Average (30) 34.39 Buy
Simple Moving Average (30) 34.42 Buy
Exponential Moving Average (50) 33.62 Buy
Simple Moving Average (50) 33.73 Buy
Exponential Moving Average (100) 32.18 Buy
Simple Moving Average (100) 31.30 Buy
Exponential Moving Average (200) 30.80 Buy
Simple Moving Average (200) 30.09 Buy
Ichimoku Cloud Base Line (9, 26, 52, 26) 34.14 Neutral
Volume Weighted Moving Average (20) 34.91 Buy
Hull Moving Average (9) 34.74 Buy
