Chart of the Day: A Holding Bulks Up Before Earnings Season Begins
The stock made a clear bottom earlier this month and is gaining lost ground in a hurry.
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The big banks will kick off earnings season next month and the hope is they will signal the economy is in much better shape than most people think.
CEOs such as Brian Moynihan from Bank of America BAC have been throwing cautious words out there, but not the doomsday variety. He is simply trying to tamp down on the enthusiasm we experienced during the first part of 2025 and have a more rational or balanced view. Let's face it: The U.S. economy has been pulling back slowly for months; remember the talk of a soft landing?
Bank of America is showing some nice leadership even if it remains about 10% off the highs from February and November. The indicators have improved dramatically, the MACD (moving average convergence/divergence) and stochastics are bullish while money flow is sharply higher. Parabolic SAR is also bullish though the candles are still pink, which means bearish on the GoNoGo composite of indicators.
Further, there is sharp resistance ahead with the 200-day moving average and the downtrend line. With a good response to next month's earnings (which is very possible) BAC is going to make a run to $50.
We should see that change very soon.
We like Bank of America in TheStreet Pro Portfolio and rate it a One, or "buy at anytime."
At the time of publication, TheStreet Pro Portfolio was long BAC.
