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Breakout Confirms BAC Still a Strong Buy

Bank of America broke from a bull channel top on Tuesday

By Sam Collins, InvestorPlace Chief Technical Analyst


Bank of America (NYSE:BAC) — This is the second largest U.S.-based financial holding company with global assets of $2.2 trillion. The bank is a conglomerate of financial services, and to complement the full-service nature of its objectives, it acquired Merrill Lynch in 2008.

Year-end reviews by Wall Street analysts resulted in an upgrade of Bank of America. Reported earnings for 2011 were just $0.01. In 2012, the company earned $0.25. The newly revised consensus for 2013 is $0.93 and $1.29 for 2014.

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. On Tuesday, the stock broke from a bull channel top and was the top-performing stock in the Dow 30.

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.

BAC Chart
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Trade of the Day Chart Key

Article printed from InvestorPlace Media, https://investorplace.com/2013/05/trade-of-the-day-bank-of-america-nyse-bac-4/.

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