Bank of America Corporation (symbol ‘BAC’) share price rose by around 22% in the last quarter of the year and managed to cover the losses incurred in the previous quarter. The company is expected to report its earnings for the fiscal quarter ending December 2023 on Friday 12th of January before market open. The consensus EPS for the quarter is $0.68 compared to the result for the same quarter last year of $0.85.
‘ Bank of America had steady increasing net income throughout the whole of 2023 while its debt makes up only 10% of its total liabilities. Even though these might show a sound positive balance sheet , the current ratio says otherwise. The company has a current ratio of just 83% which means that it does not have the ability to repay its short term liabilities with the current assets at hand. This might be a dealbreaker for some investors to divert their capital into the company as an investment.’ said Antreas Themistokleous, an analyst at Exness.
From the technical analysis perspective the price had a rather steady bullish trend in the last couple of months and is currently testing the support level of the 61.8% of the weekly Fibonacci retracement level. The Stochastic has been recording extreme overbought levels for about 2 months while at the same time the bullish momentum is shown to be slowing down. Both of these indicate that it is possible to see a correction to the downside in the near short term. If this is the case then the first area of possible support might be found around the $ 32 price area which is made up of the 50% of the weekly Fibonacci retracement level as well as the inside support area of price reaction in early August. A second area of possible support could be the $30 price level which consists of the touch of the lower band of the Bollinger bands and the 50 day moving average, the 38.2% of the weekly Fibonacci retracement level and also the psychological support of the round number.