Bank of America Close to Resistance

Published on Tuesday, 09 March 2010 08:12 Written by Danny Miller

New York, March 9th (TradersHuddle.com) - Shares of Bank of America Corporation (NYSE:BAC) are trading very close to calculated resistance at $16.86 with the current price action closing at just $16.74 placing the stock near levels that make it difficult to buy.

Bank of America Corporation offers banking, investing, asset management, and other financial and risk-management products and services. The Company has a mortgage lending subsidiary, and an investment banking and securities brokerage subsidiary. Bank of America, the biggest U.S. lender, has a very extensive network of retail banking locations in the U.S. The Bank was founded in 1874 and its headquartered in Charlotte, NC.

Bank of America's current stock range is defined by current calculated support defined at $14.25 and by the resistance level at $16.86, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Bank of America, as the stock is well above support, however, as the stock pulls back towards $14.25 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $16.86 then traders will get an opportunity to enter Bank of America stock by establishing a position as the stock moves to a higher range.