Chart of the Day: Getting Ready for Bank of America Earnings

Here's the Latest on Portfolio Names Bank of America and Morgan Stanley

Next week kicks off a big week of earnings and Bank of America (BAC) will be in the spotlight. The company reports on April 15 and no doubt there will be worries over consumer spending habits, how the Iran War is hitting their investment arm (Merrill Lynch) and whether housing/mortgage business is ready for a bullish move.

All things considered, Bank of America seems to be in a good spot if the economy starts to expand. The prior quarter showed some great progress on company initiatives, but current market conditions have proven treacherous even to the best-prepared companies.

The chart of BAC has improved over the last few weeks. The chart flattened out after a rough February when the stock was declining just about everyday. A nice, flat base period put in a floor and now we see a brief pattern of higher highs, higher lows.

Still, the candles are still pink/purple which is bearish, so that gives us some pause. Trading above the Bollinger band, however, is bullish, as the stock could see more upside. However, BAC is running in to some resistance at the 100-day and 200-day moving averages, so that will be a tough climb (arrow).

Lastly, we see stochastics (momentum) rising but the money flow is leaking lower. This divergence could be caused by mechanical (algorithm) buying or some short covers but not big institutional additions yet.

We like Bank of America in TheStreet Pro Portfolio and rate it a One, or "buy at anytime."

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At the time of publication, TheStreet Pro Portfolio was long BAC.