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BAC’s Breakout Could Land Traders 25%-Plus Returns

Bank of America broke from a right triangle and flashed a buy signal


Bank of America (BAC) — This is the second largest U.S.-based financial holding company with global assets of $2.1 trillion. Year-end reviews by Wall Street’s analysts resulted in upgrades. For 2014, earnings are estimated to be $1.32 per share, up from $0.90 in 2013, and $1.62 is expected in 2015.

I’ve been successfully recommending BAC for several years. Since late December, the stock has been consolidating following a run from $14.50 in November. Last week, BAC broke from a right triangle and flashed a buy signal from its MACD just as momentum turned positive. 

The near-term target from the breakout is $22. Long-term investors could reap a much higher reward by holding this stock as a cornerstone investment.

BAC Chart
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 Chart Key

Article printed from InvestorPlace Media, http://investorplace.com/2014/03/trade-day-bank-america-bac-3/.

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