Chart Glance- After BAC formed a double bottom on Dec 19th 2011, BAC has been off to the races. BAC looks to be forming a broader, reverse head and shoulder-type pattern. BAC is making “higher/ highs” and “lower/ lows.” Technicals indicate that BAC is in the early stages of breaking higher and is currently in a tight bullish flag. Alex Bernal has a price target of $11.00. There seems to be a lot of resistance/sellers around the $9.60-$10.00 range.
50 DMA ($7.65), 100 DMA ($6.74), 200 DMA ($7.58).
Support 1: $7.95 Support 2: $6.54
Bank of America’s stock rages after passing stress test. This is the highest BAC has traded in the last 7 months. Federal Reserve Stress Tests confirmed that BAC has improved its capital levels.Bank of America Corporation announced a few days ago that the Board of Directors authorized a regular quarterly dividend of $18.125 per share on the 7.25 percent Non-Cumulative Perpetual Convertible Preferred Stock. After showing it was able to pass the stress test, Bank of America could be in a position to ask for a modest dividend increase next year but no share buybacks. BAC needs to keep accumulating capital to meet so-called Basel III capital standards.. Under the stress scenario, the Fed said Bank of America would have net revenue before loan-loss provisions of $40.1 billion, behind JPMorgans ($59.3B)
By Greg Zimny