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Trade of the Day: Bank of America (NYSE:BAC)

We expect BAC to make another $2 move up toward $27

   

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Today, we’re opening a new bullish trade on Bank of America (BAC). After jumping last week in the aftermath of President Trump’s speech before a joint session of Congress, BAC has pulled back a bit, giving us a great opportunity to jump into a new bullish trade on the stock.

President Trump hit on a variety of important topics for traders focusing on the financial industry during his speech. His promises that tax-reform and regulatory-overhaul recommendations will be coming shortly were music to Wall Street’s ears. We are still waiting on the details of those recommendations, but traders have shown they are willing to be optimistic in their forecasts.

Based on the $2 move the stock made from $23 to $25 before consolidating and then breaking out higher last Wednesday, we expect BAC to make another $2 move up toward $27.

‘Buy to open’ the BAC April 26 Calls (BAC170421C00026000) for a maximum price of $0.70.

You can learn more about identifying price patterns and using them to project how far you think a stock is going to move in our Advanced Technical Analysis Program.

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.


Article printed from InvestorPlace Media, http://investorplace.com/2017/03/trade-of-the-day-bank-of-america-nysebac-3/.

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