Is Bank of America Close to Support?

Published on Thursday, 26 April 2012 09:24 Written by TradersHuddle Wire

New York, April 26th (TradersHuddle.com) - Shares of Bank of America Corporation (NYSE:BAC) ended the trading session close to calculated support at $7.95, a level that will raise the attention of traders looking for an entry point.

Bank of America's stock range is defined by its calculated support defined at $7.95 and by the resistance level at $9.17. This range could be used as a reference by traders planning their next move. The area where buyer interest might materialize is defined as calculated support. Stocks trading near support might see upside if it can successfully hold the technical level. However, this area if breached will signal participants that the stock failed to entice buyers to step in to support it.

Traders wanting to establish a position should pay close attention to Bank of America's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $9.17 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

Shares of Bank of America Corporation closed at $8.26 in the prior trading session.

Bank of America Corporation (NYSE:BAC) 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.