Dallas, Texas 04/21/2014 (FINANCIALSTRENDS) – Bank of America Corp (NYSE:BAC) on the daily chart has seen a strong down move from the time it hit the intra-day high at $18.05. This down move has also seen the stock break below the all-importanttrend line support at $16.83. The stock has seen selling over the last few sessions but has also witnessed pull back in the stock and seen taken support at the $15.62. The recent sell off in the S&P has dragged all the financial stocks down with it and Bank of America Corp (NYSE:BAC) has been one of them. The stock currently trades below its 50 day moving average which is at $16.80 but well above its 200 day moving average which signifies the strong up move that the stock has been in over the last year.
The momentum indicators for Bank of America Corp (NYSE:BAC) have been in bearish territory and even though the stock has seen smart pullback from the lower levels, the same could not be said about the momentum indicators which show no signs of gaining momentum. The relative strength index too isn’t exhibiting any signs of a pullback and this leads us to believe that if the support at $15.62 is taken out we can see lower levels on the stock.
The weekly charts for Bank of America Corp (NYSE:BAC) paint a similar picture, after being in a massive uptrend over the last year the stock is showing first signs of correction. We believe a close below $15.70 on a weekly closing basis the stock can see levels of $15.03 which is also the 50 day moving average for the stock in the very short term.
(Figure): Daily chart for Bank of America Corp (NYSE:BAC)
Bank of America Corp (NYSE:BAC) reported first quarterly loss since 2011 on back of a lofty legal bill which wasn’t received by the traders on the street.