BAC: Quantitative Analysis and Targets
Updated
Should you invest in BAC, or even more generally, banks right now?
No.
BAC is likely going to come down. If we look at its scatter plot chart below we can see more clearly the likely trajectory here:
Touching that linear line is almost a guaranteed IMO, which is a price point in the mid 30s.
I also expect it to come to or at least close to that quadratic line which is between $20 and $26.
If you look at the monthly chart (Above), I have plotted out some key technical support/resistance areas as well.
Bank stocks are not inflation resistant but tend to be more hardy against recessions. However, if this is what you are looking for, I would probably shift my interest to Canadian banks. They tend to perform better and are more secure. However, I wouldn't advise investing in anything Canadian right now, because the Canadian stock market is still currently trading at ATHs. RY is in ATH territory and its really interesting to see the huge disconnect between the NYSE/US market in general and the Canadian market. Canada is like, in a different world apparently, with no concerns of inflation, recession or anything, lol. Check out XIC (The SPY version of the TSX):
My thoughts, no financial advice!
Feel free to comment/question/critique.
Thanks for reading!
No.
BAC is likely going to come down. If we look at its scatter plot chart below we can see more clearly the likely trajectory here:
Touching that linear line is almost a guaranteed IMO, which is a price point in the mid 30s.
I also expect it to come to or at least close to that quadratic line which is between $20 and $26.
If you look at the monthly chart (Above), I have plotted out some key technical support/resistance areas as well.
Bank stocks are not inflation resistant but tend to be more hardy against recessions. However, if this is what you are looking for, I would probably shift my interest to Canadian banks. They tend to perform better and are more secure. However, I wouldn't advise investing in anything Canadian right now, because the Canadian stock market is still currently trading at ATHs. RY is in ATH territory and its really interesting to see the huge disconnect between the NYSE/US market in general and the Canadian market. Canada is like, in a different world apparently, with no concerns of inflation, recession or anything, lol. Check out XIC (The SPY version of the TSX):
My thoughts, no financial advice!
Feel free to comment/question/critique.
Thanks for reading!
Trade closed: target reached
Its interesting revisiting these old posts to see how correct they were. We tagged that 26$.
I should do more of these longer term outlooks I suppose.
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