$BAC Chart IdeasThe reason I like the immediate gap fill as my first theory is because of the bullish wick on the last candle. Otherwise it may be a few days before that gap is filled.
BAC/PO trade ideas
BAC Ahead of EarningsNYSE:BAC
BAC has earnings on Wednesday and I thought I would give my thoughts on potential trades ahead of the big day.
Firstly on the 4h chart, I notice that the price is below the red line currently(red represents the 200 day moving average) which is a strong support/resistance zone. Right now the price is below the line and it acts as a resistance as seen in the months before as well.
Another thing of note is that BAC has beat earnings expectations for the last 5 quarters in a row, however, this does not always mean the price will go up afterward. The last quarter showed a large beat on expectations yet the price still went down.
If the price does break through the 200 day moving average after earnings, I would recommend a long position but currently I am advocating for a short also noting how much the company's price has grown in the past year (+68%).
BAC - Double bottom on dailyHappy saturday traders! Next week, we have a load of bank earnings and we start off with BAC and WFC tuesday morning. Here's my thoughts on BAC: Double bottom pattern on daily TF and put/call ratio of .76 . On Friday, 3800 38.5 7/16 calls were bought during the day. Options are looking for a 3.5% implied move. GL! I will post a WFC analysis later!
BAC roll the put vertical - over and overBAC has large reserves that will continue roll out to the bottom line as the bank exceeds the capital requirement of the stress test.
BAC has a very large stock buyback in place and will use a substantial amount of this money to support the stock price and the buyback.
Buffett received permission to increase ownership to 15% of the BAC common stock without Berkshire being considered a bank with holding company. This alone implies that 15% of the common is not traded - an older Buffett idea not generally adhered to by the current portfolio managers at BERK.
BAC raised the dividend this quarter.
Indicators are positive.
Absent a decline in RSP and SPY the position continues to pay with an at the money cash secured put and a standard deviation lower put.
Here is the trade... Sell the August 20 $41 strike put for $1.95 and buy the August 20 $36 strike put for $0.22. Net gain of $1.75 at the close Friday.
I will roll it again in 21 days.
BAC Getting Back To $40.80 - Resistance On The DailyBAC is finally back above $40.50 but now the fight starts at $40.80. It was a previous level of support this quarter now I think it could be a resistance level on the daily chart. Wit the stress test news, it wouldn't surprise me if it waffles a bit around here then hopefully breaks. I'm long right now with both stocks and options on the company.
IF/WHEN $40.80 breaks, then I'd like to see it test and break above the 50DMA sitting around $41.18. Will it happen overnight? we'll see but any major extension could be met with some profit-taking too so I'm keeping that in mind also. Option are for trading, the stock I'm in from the teens and holding long.
Wouldn't want to treat these banks like penny stocks in any way but the recent volatility has definitely brought in some trading momentum as opposed to the buy and hold peeps from earlier in the year.
bank Of America is crushing bac down Bac Stock - bank Of America is crushing
only sale the bac is going down sharply for the next xeeks to come .... please be careful..
after wave analysis the stock will go sharply to complete the c wave of ABC corecction in the monthly frame .
BAC BUY/LONG 43++ to 50++ AUG2021 TICKER CODE: BAC
Company Name: BANK OF AMERICA CORPORATION
Industry: US Stocks Finance Major Banks
Position Proposed: NOW READY 39.86
Entry:
1st Partial Take Profit: 43.00-43.45 (JUL21)
2nd Partial Take Profit: 49.60-50.04 (AUG21)
NEXT BUY ENTRY: 33.02
Stop Loss: 31.95
Technical Analysis
1. Broke through EMA
2. Ascending Wedge (Partially completed)
3. RSI Oversold
4. Area of Confluence
5. Fibonacci Retracement near 0.618 and at next market structure
BAC near 50 day support Nearing trendline support at the 50 day MA. It's been keeping this trend for > 6 months. I don't expect anything to change. The $42 calls are not a bad price even for a month out.
BAC TrendLooking at the 50EMA, we see BAC coming back into its monthly trend, catching support at the 50 and rallying 10%. This time BAC fell on extremely low volume while the RSI is also catching support. Financials are still in rotation and will be adding to this position over the week, aiming for mid/high 40s by early July.
BAC (Short it)Rising wedge.
should lose minimum 30%
Grab some August contracts.
JPM in the same position
BAC: Trend violated. So what's next?Investors don't like banks anymore. Inflation feels to be under check or not a concern at the moment and the US10Y on a decline. Interest rates are not going anywhere for now. So there will not be much of a demand for banks.
Today BAC broke below its 5-month trendline and should go back to test the upper channel of pre-pandemic (see the weekly chart). There is a chance that this was a bear trap so we shall wait for a confirmation. Remember the 2 days or 3% rule.
