Financials were one of the best performing sectors after the Pfizer vaccine news on November 9. They’ve pulled back in the last two weeks, creating a potential opportunity in one of the biggest and most liquid names: Bank of America.
BAC is trying to hold $30. Aside from its “round number” status, this level is potentially important for a few reasons.
First, it was a resistance line for almost two weeks in late December and early 2021.
Second, it’s almost exactly the 38.2 percent retracement level based on BAC’s move between the low on September 24 and its high on January 14.
Third, the 50-day simple moving average (SMA) has been rising quickly and is now just $0.12 below $30. In fact, BAC’s low today was just $0.03 above it.
Finally, stochastics are back toward oversold levels.
Given the sharpness of its pullback, BAC may need to consolidate before bouncing. However its exposure to the broader economy, low valuations and liquidity (especially for options traders) makes it a potential go-to stock if the “reopening” trend resumes. Traders may want to watch for a potential bounce in coming weeks.
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I think you all have good thoughts however I sold my position thinking, WHY HOLD A LOSS for a timeline that is hard to foresee, My perceptions of the future are not good. Stocks as a whole have no reason to be where there at. 3 sma crossing a 8 sma will happen this week on the WEEKLY CHART. This dictates to me that $30 is the level to sell, NOT BUY. I am more incline to nibble the $27.00 price after seeing price action pass the next 5 weeks. Really guys, The Fundamentals of the economy are flawed, BAC is a good company since its crash to .99 cents
I stay on the sidelines, I fear this year is not the candy story market that the stock market gave to us after March 2020. Best to all.
GO REDDIT GO, TIME FOR THE MONEY MANIPULATING HEDGE FUNDS GET A SPANKING INSTEAD OF A JAILCELL.
Karam08
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I like it. I took a small position at 30ish. Further pullback will only occur with broader market pullback at this stage, in my opinion -- in which case, I'm happy to add some more.
It'll take one price target update or another press mention on share buybacks for volume to suddenly spike.
SLOPolarBear
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Everything you've mentioned checks out, except there's no consideration of volume. Buyers need to step up and pump the breaks. I'm not seeing any evidence of this yet. I'm not seeing a lot of buy orders @ $30. $28.50 is my personal target based on current volatility. With the broader market expecting to tank another few hundred points in the short term, it's fair to say that this ship will ride the tides and sink a little bit lower.
I stay on the sidelines, I fear this year is not the candy story market that the stock market gave to us after March 2020. Best to all.
GO REDDIT GO, TIME FOR THE MONEY MANIPULATING HEDGE FUNDS GET A SPANKING INSTEAD OF A JAILCELL.