Bank of America Corp (NYSE:BAC) News and Outlook

Bank of America Corp (NYSE:BAC) News and Outlook

Bank of America Corp (NYSE:BAC) News and Outlook

The Supreme Court today issued a blow to banking giants Bank of America and Wells Fargo. The court allowed the city of Miami to proceed with lawsuits it filed in 2013 against the banks for allegedly targeting minorities with predatory loans that contributed to the city’s ongoing foreclosure crisis, potentially exposing the banks to millions in damages.

Bank of America paid $7.3 billion in corporate income taxes in 2016 at an effective tax rate of 29%. If Trump’s plan to lower the rate on corporations to 15% comes to fruition, Bank of America could redirect billions of dollars to dividends and share buybacks, both of which the North Carolina-based bank is inclined to do.

Overall, the bias in prices is: Upwards.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 24.64.

The projected lower bound is: 22.54.

The projected closing price is: 23.59.

BANK OF AMERICA closed up 0.270 at 23.610. Volume was 23% below average (neutral) and Bollinger Bands were 21% narrower than normal.

Open         High         Low           Close         Volume
23.520     23.770      23.350      23.610      72,382,848

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

Moving Averages: 10-period            50-period         200-period
Close:                      23.33                    23.96                 19.91
Volatility:               31                          28                      29
Volume:                  106,643,248      96,431,096      99,234,112

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 18.6% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 2 periods.

Bank, America, BAC, NYSE, News, Outlook, HEFFX, Shayne Heffernan

HEFFX Momentum
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 37.1795. This is not an overbought or oversold reading. The last signal was a buy 10 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 52.56. 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 10 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 57. This is not a topping or bottoming area. The last signal was a sell 2 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 7 period(s) ago.

Bank of America Corporation, incorporated on July 31, 1998, is a bank holding company (BHC) and a financial holding company. The Company is a financial institution, serving individual consumers, small- and middle-market businesses, institutional investors, corporations and governments 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 its business segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, Global Markets and All Other.

 

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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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