Is Bank of America Expecting Resistance Soon?
Published on Friday, 22 February 2013 07:44 Written by TradersHuddle Wire
New York, February 22nd (TradersHuddle.com) - Bank of America Corporation (NYSE:BAC) ended the trading session at $11.42, near its 50 day moving average set at $11.53. Bank of America's price action placed the stock below this important level, which makes it difficult to be bought, as the stock will certainly face resistance as it approaches its 50 day moving average.
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.
The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $11.02 and resistance at $12.42. These levels will be closely monitored, as they provide great insight into the latest price dynamics.
If traders want to establish a position in Bank of America, given the resistance expected as the stock approaches its 50 day moving average, a trade might materialize as the stock manages to break this important technical level. After the breakout, the 50 day moving average could be used as support going forward. However, until the break materializes, buying the stock is basically a gamble with 50-50 chance.
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