Bank Stocks Getting Slammed: Bank of America (BAC)
Bank of America Corp (NYSE:BAC) reported a top- and bottom-line beat on April 18, with earnings of 41 cents per share six cents ahead of estimates on a 6.9% rise in revenues. That was good enough to launch BAC shares into a mini-rally of roughly 5% in about a week … but without any other catalysts, the stock started to tread water.
Then Wednesday happened, and the rug was pulled.
BofA has been slammed down to the critical support level of its six-month trading range. This traces out an epic head-and-shoulders reversal pattern that, on a breakdown, suggests a downside target of $18. That would be worth a 21% decline from current levels.