Bank of America: Old Highs in Play?

NYSE:BAC   Bank of America
Bank of America is jumping to new 14-year highs after a strong quarterly report. This raises an important question: Will the megabank now return to its previous all-time highs from before the subprime crisis?

BAC peaked at $55.08 in November 2006. It inched lower over most of the following year, before the selling cascade hit. Prices hit a nadir of $2.53 in February 2009. They’ve gradually staggered higher since. A key moment occurred in March 2020, when BAC held the 2014 and 2015 high of $18. Since then it’s been a steady recovery.

The stock was back over $40 by June. BAC then started a consolidation phase with a low above $38 in mid-June. There was a dip toward $36.50 in July and another stab toward $38 last month. The result was an inverse head and shoulders / high basing pattern.

BAC flew back from those lows along with the SPDR Financial ETF (also forming an outside week). It made a new 52-week high before easing back to test the August peak of $42.84. Then came a strong earnings report, with healthy loan growth, and BAC was hitting new highs above $45. (It also formed another outside week.)

The stock continues on that trajectory today, with no clear resistance on the chart. Given the steepening yield curve and ongoing economic recovery, BAC may continue its move.

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