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- 1 Bank of America’s stock price (NYSE: BAC) fell 10% in August.Bank of America’s stock price (NYSE: BAC) fell 10% in August.
- 2 BAC stock price faced rejection at $32 and dropped below both EMAs.
- 3 Bank of America stock is stuck in a wide range of consolidations.
Bank of America Corp. BAC stock price corrected approximately 10% in the previous month. It lost its bullish momentum and faced a sharp rejection at $32.00.
The BAC stock price formed a bearish pattern and entered a correction phase. It dropped below the 50-day and 200-day EMAs, indicating the trend is in a downward direction.
In the middle of July, Bank of America stock price broke through the $30.00 hurdle level. At the same time, the quarterly earnings were also released. Due to that, positive sentiment was triggered, and prices rallied by approximately 9% in a short span of time.
The momentum in the BAC stock halted near $32.00, and prices witnessed profit booking.
On a longer time frame, the BAC share price seems to be consolidating in a range between $27 and $31. Buyers had tried to break the higher range and expand upward. But the uptrend was not sustainable, and sellers dragged the prices back into the range.
On the lower side, BAC stock formed a strong base near $27, which will act as support for bulls. Presently, the stock price closed the previous session at $28.48, with an intraday rise of 0.42%. The market capitalization stands at $226.31 Billion.
Will Bank of America (BAC) Stock Defend the YTD low?
Bank of America Corp. BAC stock price is in a correction phase, and sellers look more active as compared to buyers. However, the prices are near crucial support, and buyers are trying their best to defend them.
Until Bank of America stock price sustains above $27.00, the probability of a bounce back will remain high. However, buyers will gain confidence when prices are able to break out of the $30 hurdle.
On the other hand, if the correction continues and prices drop below $27.00. Then a panic sell-off may trigger, which will drag the prices toward new lows.
Bank of America Stock Price Bearish on Weekly Time Frame
Bank of America stock price is bearish on the weekly time frame. However, the prices have corrected a lot from their swing high. So a narrow range consolidation or minor pullback rally is possible.
The MACD curve’s slope sideways indicates bears are losing momentum and prices might spend some time in consolidation. The RSI at 40 denotes weakness. But if the prices begin to recover, then the RSI might test the neutral zone.
Conclusion
Bank of America Corp. BAC stock price fell 10% in the previous month and eroded a large portion of the market capitalization.
However, the BAC share price is near the 52-week low, so the downfall might come to a halt. The analysis suggests the stock has corrected a lot, so a pullback rally is pending.
Technical Levels
- Resistance levels: $30.00 and $32.89
- Support levels: $27.00 and $26.00
Disclaimer
The views and opinions stated by the author or any other person named in this article, are for informational purposes only. They do not provide financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
