Bank on BAC Soaring Another 35%-Plus

by Sam Collins | September 18, 2013 1:35 am

Bank of America (BAC[1]) — This is the second largest U.S.-based financial holding company with global assets of more than $2.1 trillion. Year-end reviews by Wall Street analysts resulted in upgrades. Reported earnings for 2011 were just $0.01. In 2012, the company earned $0.25. The newly revised consensus for 2013 is $0.91 and $1.36 for 2014.

On May 15, I wrote[2], “Technically, BAC broke from a 10-month cup-and-handle formation in early December, a clear sign of the beginning of a major move higher… The breakout confirms that BAC is still a strong buy. The immediate trading target is $15, but long-term investors could reap a much higher return.”

On July 23, the stock hit my trading target with a high of $15.03. Since then, profit-taking has taken a small bite out of these gains, and the stock has been stabilizing at its 50-day moving average.

The bull channel is powerful, momentum is strong, and MACD just issued a buy signal. Buy BAC at its 50-day moving average with a trading target of $20. As before, long-term investors could reap a much higher reward by holding this stock as a cornerstone investment.

09 18 13 bac 300x198 Bank on BAC Soaring Another 35% Plus
Click to Enlarge
chart key 300x84 Bank on BAC Soaring Another 35% Plus[3]

Endnotes:
  1. BAC: http://studio-5.financialcontent.com/investplace/quote?Symbol=BAC
  2. I wrote: http://investorplace.com/2013/05/trade-of-the-day-bank-of-america-nyse-bac-4/
  3. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

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