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- 1 BAC stock price crashed more than 4% in the last week.
- 2 BAC (NYSE: BAC) share price showcased a breakdown of a 36-day consolidation.
- 3 The analysts offering a 1-year price forecast have a maximum potential of 30.73% to the upside.
Bank of America (BAC) stock price slumped 1.46% intraday on Friday, September 22nd. BAC stock price closed the week with a breakdown of a 36-day consolidation. The breakdown has turned the short-term trend in the favor of the bears. The bulls have lost control and the price has entered the bearish territory.
The stock price shares were already weak over the charts due to the poor performance of American banks and fear of recession. Moreover, several banking and financial stocks were trading low due to global financial market weakness with concerns about future interest rate hikes by the Federal Reserve.
Higher interest rates can lead to higher funding costs for the banks which might lower their net interest income which is a key driver of their earnings. The daily chart illustrates that Bank of America stock was on a declining trend and declined more than 20% in March 2023. The stock price then struggled to recover which was later rejected by the 200-day EMA.
Analysts offering a 1-year price forecast for Bank of America have a maximum estimate of $49 with an upside potential of more than 77% and a minimum estimate of $27.50.
BAC stock option-chain analysis states that the current implied volatility in the market is 28.63% with a decrement of 0.40% in the last trading session. The at-the-money strike has an OI of 5651 on the PUT side and 1918 on the CALL side indicating the sellers dominating at the CMP.
BAC Stock Price Showed Breakdown of Consolidation
The BAC stock price currently trades at $27.64 and witnessed a breakdown of a 36-day consolidation and a positive trendline support on Friday, September 22nd. The stock closed with weakness over the charts. The short-term trends have aligned with the long-term trend and the price might continue to decline on Monday.
Technical Indicators Show Weakness Over the Chart
The daily BAC stock price chart shows that the price is trading below the key moving average of 50-day and 200-day EMA. The EMA has turned out to be a dynamic resistance for the price.
The overall technical opinion rating including RSI and MACD signals a 72% “sell” with a strengthening short-term outlook on maintaining the current direction.
Conclusion
Bank of America (BAC) stock price fell 1.46% on Friday and broke a 36-day consolidation. The stock is in a bearish trend due to the weakness of the global financial market and fears of higher interest rates by the Fed. The stock declined more than 20% in March 2023 and failed to recover above the 200-day EMA. Analysts have a maximum estimate of $49 for BAC in a year which is more than 77% higher than the current price of $27.64. The stock might continue to fall on Monday.
Technical Levels
- Support levels: $26.37 and $24.84
- Resistance levels: $30.21 and $32.77
Disclaimer
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Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
