Bank of America Corp (NYSE:BAC) Q2 Earnings Preview

Bank of America Corp (NYSE:BAC) Q2 Earnings Preview

Bank of America Corp (NYSE:BAC) Q2 Earnings Preview

  • When Bank of America (NYSE:BAC) reports second-quarter earnings next Tuesday, investors can expect its earnings to rise on both a sequential and year-over-year basis. That is, at least, the word from the analysts.
  • The consensus estimate of analysts tracked by Yahoo! Finance is for Bank of America to earn $0.43 per share in the three months ended June 30. That compares to the $0.41 per share that it earned in both the second quarter of last year and the first quarter of this year.
  • “Volatility has been very low this quarter, which has certainly led to somewhat of a softer trading environment, especially in the fixed income and equity markets,” noted Morgan Stanley chief financial officer John Gerspach last month. “So given that slower trading environment, we would expect revenues in our fixed income and equity markets to be down year-over-year in the — I guess I’ll call it — the low double digits range, maybe 12% to 13%.”

Bank of America Corporation is a bank holding company and a financial holding company. The Company is a financial institution, serving individual consumers and others with a range of banking, investing, asset management and other financial and risk management products and services. The Company, through its banking and various non-bank subsidiaries, throughout the United States and in international markets, provides a range of banking and non-bank financial services and products through four business segments: Consumer Banking, which comprises Deposits and Consumer Lending; Global Wealth & Investment Management, which consists of two primary businesses: Merrill Lynch Global Wealth Management and U.S. Trust, Bank of America Private Wealth Management; Global Banking, which provides a range of lending-related products and services; Global Markets, which offers sales and trading services, and All Other, which consists of equity investments, residual expense allocations and other.

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 23.71.

The projected upper bound is: 25.70.

The projected lower bound is: 23.72.

The projected closing price is: 24.71.

BANK OF AMERICA closed up 0.090 at 24.690. Volume was 100% below average (consolidating) and Bollinger Bands were 22% wider than normal.

Open         High          Low           Close          Volume
24.690      24.690      24.690      24.690      128

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period         50-period         200-period
Close:                      24.58                 23.57                 22.02
Volatility:               22                       27                      30
Volume:                  75,084,576      74,624,456      97,386,872

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

BANK OF AMERICA is currently 12.1% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of BAC at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BAC and have had this outlook for the last 9 periods.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 41.6244. This is not an overbought or oversold reading. The last signal was a sell 3 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 61.95. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 60 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 54. This is not a topping or bottoming area. The last signal was a sell 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 8 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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