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Powerful Chart Signal Says BAC Could Pop Higher

Bank of America executed a breakaway gap through its bullish resistance line


Bank of America (BAC) — 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. The consensus earnings estimate for 2014 is $1.33 per share, up from $0.90 in 2013. They expect $1.62 in 2015.

On May 15, I concluded that, following a break from a 10-month cup-and-handle formation in December 2012, the immediate trading target was $15. That objective was hit in mid-July, and on Sept. 18, I increased my target to $20 following a MACD buy signal and noting that BAC was in a powerful bull channel.

Last week’s breakaway gap through its bullish resistance line is a powerful chart signal that could pop BAC beyond $20. Buy BAC at $17 with a revised trading target of $22. Long-term investors could reap a much higher reward by holding this stock as a cornerstone bank investment.

BAC Chart
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Chart Key

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