(Photo by Robert Alexander) Images figcaption >
Bank Of America (BAC) established its 52-week intraday high at $ 43.49 on June 3. The stock is in increase of 31.2% since the beginning of the year and is almost in territoryire of correction, 8.6% below this peak. Longer term, this banking giant is 121.5% above its March 23, 2020 low of $ 17.95.
LAC has successfully implemented an entry-level checking account program called Advantage SafeBalance. This program has more than three million customers, up from 0.1 million a year ago. This bank too big to fail is optimistic about the US economy.
If you're bullish on BAC, buy from its 50-day simple moving average at $ 40.00. Otherwise, buy a weakness at the 200 day simple moving average at $ 37.41. I'm showing semi-annual and annual pivots at $ 38.65 and $ 37.81. Beware, a Friday close below its modified five-week moving average at $ 40.50 will lower its weekly chart to negative.
Bank of America daily chart BAC
Daily chart for Bank of America. Courtesy of Refinitiv Xenith. fbs-accordion> Refinitiv
Bank of America daily chart shows that the stock confirmed a golden cross on November 23, 2020. This happened when the 50-day simple moving average ge exceeded the 20-day simple moving average. This stock closed that day at $ 27.39 as a buy opportunity.
Note how the 50 day SMA held at $ 29.88 on the 27th. January. This average was a magnet between June 14 and September 15. This is after the stock reached its 52-week high at $ 43.49 on June 3 and its secondary high at $ 42.84 on August 26.
The longest horizontal line high is his weekly risk level at $ 42.59. The middle two horizontals are the semi-annual and annual pivots at $ 38.65 and $ 37.81. Just below these levels is the 200-day simple moving average at $ 37.41. The lowest horizontal line is the quarterly value level at $ 34.32.
Weekly chart for Bank of America
Weekly chart for Bank of America. Courtesy of Refinitiv Xenith. Refinitiv
The weekly chart for BAC will be downgraded to negative at the close thisweek below its modified five-week moving average at $ 40.50. The stock is well above its 200 week simple moving average or its reversion to the $ 30.40 average. The 12x3x3 Weekly Slow Stochastic Reading is slightly down to 64.00.
Trading Strategy: Buy Bank of American stocks when weak up to its semi-annual, annual and quarterly value levels at $ 38.65, 37, $ 81 and $ 34.32 respectively. Reduce the holdings in force to its weekly risk level of $ 42.59.