Powerful Chart Signal Says BAC Could Pop Higher

by Sam Collins | January 21, 2014 1:17 am

Bank of America (BAC[1]) — 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[2], 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[3], 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
Click to Enlarge

Chart Key[4]

  1. BAC: http://studio-5.financialcontent.com/investplace/quote?Symbol=BAC
  2. On May 15: https://investorplace.com/2013/05/trade-of-the-day-bank-of-america-nyse-bac-4/
  3. on Sept. 18: https://investorplace.com/2013/09/trade-of-the-day-bank-of-america-bac/
  4. [Image]: https://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: https://investorplace.com/2014/01/trade-day-bank-america-bac-2/
Short URL: http://invstplc.com/1nskEEz