For his second "Executive Decision" segment of Mad Money Thursday night, Jim Cramer spoke with Brian Moynihan, chairman and CEO of Bank of America (BAC) , to learn more about the bank's commitment to minority-owned businesses.
Bank of America reported on Thursday that they're increasing their commitment to minority-focus investment funds to $350 million from $200 million.
Moynihan said Bank of America continues to put their money where their mouth is and prove that you can do well and do good at the same time.
Moynihan also commented on their recent decision to pay a $25 an hour minimum wage by 2025. He said they remain committed to their employees and want people with a career mindset when they join the company.
Cramer said Moynihan proves once again that business can be the biggest driver of change in America.
Let's check and see if the charts of BAC can drive change in your portfolio.
In this daily bar chart of BAC, below, we can see how prices have climbed since early November. BAC is trading above the rising 50-day moving average line and above the rising 200-day line. We can see a bullish golden cross of the 50-day and 200-day averages way back in the middle of November.
The trading volume has remained active and the On-Balance-Volume (OBV) line shows a rise the past 12 months because buyers of BAC have been more aggressive than sellers.
The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in early November and has stayed above it all the time since. The oscillator looks ready to turn higher again.
In this weekly bar chart of BAC, below, we can see a positive trend. Prices are trading above the rising 40-week moving average line. The weekly OBV line is strong and confirms the price gains. The MACD oscillator is in a bullish alignment above the zero line. I see no nearby chart resistance.
In this monthly bar chart of BAC, below, we can see that prices are pointed up and in a position to retest the highs of 2006-2007. There may be some longs from that period of time who may want to "get even" but the $45-$55 area is so far back in history this chart resistance is likely to be psychological rather than real.
In this Point and Figure chart of BAC, below, we used daily price data with a five box reversal filter. A $122 price target is indicated. This will take perhaps one or two years or more to reach in my opinion.
Bottom line strategy: Traders could go long BAC at current levels risking below $38 for now.