Bank of America is near a three-month trend line today as the entire market pulls back. $BAC is far from the strongest of the bank stocks, which are a weak sector in general, so it's quite possible it won't hold the support. I've picked up a July 31 option call and set an alert to trigger to me to sell if it crosses below the trend line. Estimize is forecasting small beats on both EPS and revenue on $BAC's next earnings report.
Comment:
BAC has so far respected the trend line perfectly today.
Comment:
This trade is looking very successful as $BAC bounces hard from the trend line today. $BAC is expected to beat on earnings and revenue, with the most accurate estimates above the consensus. Thus, I think price may strengthen leading up to the release. However, there's a risk the stock could sell off after the report if the company issues weak guidance or no guidance at all.