Bank of America Makes Its Move to the Upside

Let's take another look at the charts.
Stocks quotes in this article: BAC

Bank of America Corp. (BAC) is the Stock of the Day at Real Money on Wednesday. BAC was trading higher as the market opened this morning. The bank beat on earnings and revenue expectations in its latest quarterly earning's report. 

We wrote about BAC the other day ahead of earnings, noting that "I have no special insight about Wednesday's earnings numbers for BAC but the sum of the charts suggest to me that traders should be prepared and positioned for an upside move."

In this daily bar chart of BAC, below, we can see that prices finished the day strong. The On-Balance-Volume (OBV) line improved and the Moving Average Convergence Divergence (MACD) oscillator moved closer to a buy signal.  
 
 
In this Point and Figure chart of BAC, below, we can see yesterday's gains and that a trade at $31.02 will be an important upside breakout. 
 
Bottom line strategy: BAC has started its upside move. If you want to be a buyer do not try to buy a dip as you will probably be disappointed. 
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TAGS: Earnings | Investing | Stocks | Technical Analysis | Trading | Banking | Stock of the Day

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