Bank of America (BAC) is anticipated to report its latest quarterly figures on April 18. Let's pay a visit to one of their many, many branches and check out the charts and indicators.
In this daily bar chart of BAC, below, we can see a number of sell signals. Prices have rolled over the past six months and have broken below the flat 200-day moving average line. After the break below the 200-day line prices rebounded but failed around the 200-day line and below the declining 50-day average. The trading volume has increased since the middle of December as some traders are voting with their "feet" so to speak.
BAC is pointed down and close to a test/break of the early March low at $30. A new low close for the move down could precipitate further declines.
The On-Balance-Volume (OBV) line has been under pressure for more than three months telling us that sellers of BAC have been more aggressive with heavier trading volume on days when the stock has closed lower.
The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly Japanese candlestick chart of BAC, below, we can see the price action of the past three years. BAC made a very respectable advance from the March 2020 low but has since turned lower and trades below the flat to declining 40-week moving average line.
The weekly OBV line shows weakness and the MACD oscillator has recently crossed below the zero line for an outright sell signal.
In this daily Point and Figure chart of BAC, below, we can see a potential price target in the $34 area.
In our second Point and Figure chart of BAC, below, we used weekly price data. Here the software projects a $27 objective.
Bottom line strategy: I have no special knowledge of what BAC is going to report to shareholders but the charts are weak and so are the indicators. I would recommend avoiding the long side of BAC as further declines could unfold in the weeks ahead.
