Yesterday Bank of America made news by increasing its minimum pay to $20 a hour. However, it was JP Morgan’s price increase from $30 to $33.50 that made it go higher. Bank of America shares renewed the 52-week high following yesterday’s trading session, November 4, gaining 9% since the publication of a strong report for the past quarter on October 16. Revenue rose to $23 billion, exceeding market expectations of $22.2 billion. At the same time, Bank of America was the only competitor that showed an increase in net interest income. Earnings per share rose to $0.56, exceeding Wall Street’s expectations of $0.50.
Over the past week, Bank of America shares rose by 1.76%. The S&P 500 index for the same period increased by 1.27%.
Support and resistance
The company’s shares show a steady uptrend. #BAC quotes renewed the key extremes. At the moment, the issuer is testing a resistance level of 32.50. The level of 31.30 is a “mirror” support. There is potential for further growth. Indicators do not give accurate signals: the price has fixed above MA (50) and MA (200); the MACD histogram is near the zero line. 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: 32.50, 33.00.
Support levels: 31.10, 30.30, 29.30.
Trading Ideas
Long positions may be opened after the price consolidates above the level of 32.50. The closing of the profitable positions is possible at the levels of 33.50, 34.50, and 35.00. Stop loss – 31.50.
Short positions may be opened after the price consolidates below the level of 31.10 with the targets at 29.60–29.00. Stop loss – 32.00.
Implementation period: 3 days.
Bank of America Corporation, through its subsidiaries, offers banking and financial products and services for individual consumers, small and medium-sized businesses, institutional investors, large corporations and governments around the world. It operates in the Consumer Banking, Global Wealth and Investment Management (GWIM), Global Banking and Global Markets segments. The Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRA accounts, interest-free and interest-bearing checking accounts, and investment accounts and products; and credit and debit cards, residential mortgages and home equity loans, as well as direct and indirect loans, such as automotive, recreational and personal vehicle loans. As of July 22, 2019, this segment served 66 million consumer and small business customers with approximately 4,300 retail financial centers; 16,600 ATMs; and digital banking. The GWIM segment offers investment management, brokerage, banking and trust and retirement products; and asset management solutions aimed at clients of high equity and ultra-high net worth, as well as customized solutions to meet the needs of asset structuring, investment management and trust and banking of clients, including specialized asset management services. The Global Banking segment offers loan products and services, including commercial loans, leases, commitment facilities, trade financing and real estate loans and asset-based loans; treasury solutions, such as treasury management, currency exchange and short-term investment options; working capital management solutions; and subscription and distribution of debt and capital, and advisory services related to mergers and others. The Global Markets segment offers market creation, financing, securities compensation, settlement and custody services, as well as risk management, foreign exchange, fixed income and mortgage-related products. Bank of America Corporation was founded in 1874 and is based in Charlotte, North Carolina.
Bank of America Stock Recommendations
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from
https://alphabetastock.com/2019/11/05/ank-america-stock-rallies-jp-morgan-increases-price-target/
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