Bank of America has not enjoyed a rebound from the crash lows as has the general market. And just recently, the 50 DMA crossed over the 200 DMA to the downside - giving Bank of America the dreaded 'death cross' chart formation. This generally means lower pricing in the short term.
What next for BAC and banks in general? It's no secret that bank stocks are being held prisoner by the waiting game on FED policy - when will the FED raise rates and how much will it impact bank earnings? I think this is a case of much ado about nothing. A small .25 basis point raise in interest rates isn't going to crash bank revenues - yet if you look at the charts, that's what investors are fearing with BAC - as the stock is well off its highs.
I thing the prudent course is to do nothing at this moment in regards to BAC. If you own, hold. If you do not, this isn't a great time to enter the stock. For long investors, Ride out this storm. This too shall pass.
Short term rating = HOLD
Long term rating = HOLD
What next for BAC and banks in general? It's no secret that bank stocks are being held prisoner by the waiting game on FED policy - when will the FED raise rates and how much will it impact bank earnings? I think this is a case of much ado about nothing. A small .25 basis point raise in interest rates isn't going to crash bank revenues - yet if you look at the charts, that's what investors are fearing with BAC - as the stock is well off its highs.
I thing the prudent course is to do nothing at this moment in regards to BAC. If you own, hold. If you do not, this isn't a great time to enter the stock. For long investors, Ride out this storm. This too shall pass.
Short term rating = HOLD
Long term rating = HOLD