BANK OF AMERICA (BAC)

Technical analysis

Price	$ 38.61	52 weeks range	$ 36.51 - $ 50.11
Beta	1.36	Volume/ average	24.5m/ 45.0m
Sector	Banks diversified	Dividend	2.04%

Bank of America is an American investment bank and financial services holding company headquartered in North Carolina.

Price

Despite a parallel channel, the short-term trend is bearish: this is confirmed by the fluctuation from February to April 2022.

We read the lows recorded in March and April as an attempt to "bottoming" the stock and we believe this is a further demonstration of the strong support at $ 38.

On the weekly chart, we can instead appreciate this consolidation phase from a medium-long term perspective and then, in our opinion, continue upwards.

Indicators

Looking at the MACD and RSI indicators: both show a positive divergence with the price fluctuation. If we compare the levels of March 8 and April 18, we can see that a decreasing price followed by increasing indicators: a very positive scenario in the medium term.

On the weekly chart, it is more the RSI that attracts our attention as it is now very close to the oversold area: an area reached a few times and often followed by a subsequent bullish phase.

Moving averages

We believe that the strong watershed for short-medium-term fluctuations is in this case the 50-day average: the recent movements continue to be below the average, confirming the short-term bearish trend. Exceeding it, to date in the area of $ 44.00, could represent an excellent time to increase exposure to BAC.

Conclusions

At the current price we believe that BAC is close to an upside reversal: the divergence between the indicator and the price combined with the strong support at $ 38 make us feel positive on the stock.

Conservative target at $ 48.00 with a second at $ 58.00 in a medium-long term perspective

Macro-economic context available on request

Entry range $ 40 - $ 41,00

Target 1 $ 48,00

Target 2 $ 58,00

Stop loss $ 33,00