Chart of the Day: Bank of America Is Starting to Perk Up
The technicals appear to be turning bullish just in time to make a move above the long-term price range.
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Banks have been pushing forward — some of the biggest names like JP Morgan JPM, Citigroup C and Goldman Sachs GS have reached new highs of late.
It's the same story for Bank of America BAC, which is benefitting from a strong consumer-led economy.
Recent comments from the CEO noted that the company had not seen any slowdown by the consumer in terms of spending habits. The tight labor market tells them the economy remains robust, regardless of what is being said. The CEO, Brian Moynihan, said, "pay attention to what the consumer is doing, not what is being said." Indeed!
As for the chart of BAC, we see a bunch of price action stuck between $44 and $48. That is a pretty wide range (10%) for a stock with low volatility, but the lows in this box have been good support where dip buyers are adding shares.
The MACD is crossing over for an important buy signal, stochastics (momentum) is turning up, which is encouraging for the bulls. The candles are amber in color, that is neutral on the GoNoGo composite of indicators. It can very quickly move to bullish with a few more up sessions.
We like Bank of America in TheStreet Pro portfolio and rate it a two, "stockpile on pullbacks."
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At the time of publication, TheStreet Pro Portfolio was long BAC.
