Bank of America Stock Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
Bank of America stock downgraded from Buy Candidate to Hold/Accumulate after Wednesday trading session.
(Updated on Apr 24, 2024)
The Bank of America stock price fell by -0.130% on the last day (Wednesday, 24th Apr 2024) from $38.37 to $38.32. During the last trading day the stock fluctuated 1.25% from a day low at $38.02 to a day high of $38.50. The price has risen in 6 of the last 10 days and is up by 4.56% over the past 2 weeks. Volume fell on the last day along with the stock, which is actually a good sign as volume should follow the stock. On the last day, the trading volume fell by -14 million shares and in total, 24 million shares were bought and sold for approximately $933.03 million.
The stock lies in the upper part of a strong rising trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $38.45 will firstly indicate a stronger rate of rising. Given the current short-term trend, the stock is expected to rise 14.11% during the next 3 months and, with a 90% probability hold a price between $40.10 and $43.87 at the end of this 3-month period.
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BAC Signals & Forecast
The Bank of America stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $36.72 and $36.63. A breakdown below any of these levels will issue sell signals. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Tuesday, April 23, 2024, and so far it has fallen -0.130%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.
Support, Risk & Stop-loss for Bank of America stock
Bank of America finds support from accumulated volume at $37.73 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $0.475 between high and low, or 1.25%. For the last week, the stock has had daily average volatility of 2.17%.
Our recommended stop-loss: $36.84 (-3.87%) (This stock has medium daily movements and this gives medium risk. There is a sell signal from a pivot top found 1 day ago.)
Trading Expectations (BAC) For The Upcoming Trading Day Of Thursday 25th
For the upcoming trading day on Thursday, 25th we expect Bank of America Corporation to open at $38.28, and during the day (based on 14 day Average True Range), to move between $37.47 and $39.17, which gives a possible trading interval of +/-$0.85 (+/-2.21%) up or down from last closing price. If Bank of America Corporation takes out the full calculated possible swing range there will be an estimated 4.42% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $38.37 (0.13%) than the support at $37.73 (1.54%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.
Is Bank of America Corporation stock A Buy?
Bank of America holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Hold/Accumulate candidate.
Current score: 0.765 Hold/Accumulate Downgraded
Predicted Opening Price for Bank of America Corporation of Thursday, April 25, 2024
| Fair opening price April 25, 2024 | Current price |
|---|---|
| $38.28 ( 0.109%) | $38.32 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for BAC
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 38.75 | 1.13 % | |
| R2 | 38.57 | 0.657 % | ||
| R1 | 38.46 | 0.365 % | ||
| Current price: | 38.32 | |||
| Support | S1 | 38.10 | -0.582 % | |
| S2 | 37.98 | -0.87 % | ||
| S3 | 37.80 | -1.35 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0 | . | |
| R2 | 0 | . | ||
| R1 | 38.37 | 0.130 % | ||
| Current price | 38.32 | |||
| Support | S1 | 37.73 | -1.54% | |
| S2 | 34.68 | -9.50% | ||
| S3 | 33.61 | -12.29% |
BAC Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Jan 31, 2024 | Feb 29, 2024 | Mar 29, 2024 | $0.240 | 0.633% |
| 2 | Oct 18, 2023 | Nov 30, 2023 | Dec 29, 2023 | $0.240 | 0.713% |
| 3 | Jul 19, 2023 | Aug 31, 2023 | Sep 29, 2023 | $0.240 | 0.88% |
| 4 | Apr 26, 2023 | Jun 01, 2023 | Jun 30, 2023 | $0.220 | 0.767% |
| 5 | Feb 01, 2023 | Mar 02, 2023 | Mar 31, 2023 | $0.220 | 0.769% |
FAQ
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