Bank of America is Near a Key Support Area

Published on Friday, 29 June 2012 07:24 Written by TradersHuddle Wire

New York, June 29th (TradersHuddle.com) - Shares of Bank of America Corporation (NYSE:BAC) are trading very close to calculated support at $7.48 with price action closing at just $7.74 and placing the stock near levels where traders will start paying attention.

Bank of America's stock range is defined by its calculated support defined at $7.48 and by the resistance level at $8.22, which should be used by traders planning their trades. These support and resistance levels are based on a peaks and troughs algorithm of the stock's price action.

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 $8.22 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

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.