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Tuesday, April 20, 2021

Bank of America Corporation (NYSE:BAC) expects growth in the face of anticipated interest rate cuts and slowing economic growth

Bank of America Corporation (NYSE:BAC) expects growth in the face of anticipated interest rate cuts and slowing economic growth

Shares of Bank of America Corp. seesawed toward a gain Wednesday, as the bank lowered its full-year outlook for net interest income, but still expected growth in the face of anticipated interest rate cuts and slowing economic growth.

The consumer and investment bank also reported before the open a second-quarter profit that beat expectations, but net interest income that came up a bit shy. Meanwhile, sales and trading revenue fell 10%, as fixed income, currencies and commodities revenue declined 8% — a fourth straight quarterly decline — and equities revenue tumbled 13% after plunging 22% in the first quarter.

The stock BAC, +0.69% climbed 1.6% in active afternoon trading, reversing premarket losses of as much as 1.3%. Trading volume of more 65 million shares made it the most actively traded on major U.S. exchanges, according to FactSet.

On the post-earnings conference call with analysts, Chief Financial Officer Paul Donofrio cut 2019 NII growth outlook to 2%, assuming stable interest rates. Assuming the Federal Reserve cuts interest rates twice this year, which is what the “forward” rate curve is anticipating, the NII growth would be about 1%. Three months ago, BofA cut its NII growth outlook to “roughly” 3% this year in a stable rate environment.

The stock has climbed 19.6% year to date, with the SPDR financial ETF has advanced 17.1% and the S&P 500 index has hiked up 19.3%.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 30.38.

The projected lower bound is: 27.95.

The projected closing price is: 29.16.


A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 25 black candles for a net of 1 black candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

Momentum Indicators

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 36.7063. This is not an overbought or oversold reading. The last signal was a sell 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 55.88. 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 30 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 43. This is not a topping or bottoming area. The last signal was a sell 7 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 0 period(s) ago.

Rex Takasugi – TD Profile

BANK OF AMERICA closed up 0.200 at 29.190. Volume was 45% above average (neutral) and Bollinger Bands were 18% narrower than normal.

Open High Low Close Volume___
29.110 29.620 29.010 29.190 15,928,910

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

Moving Averages: 10-period     50-period     200-period
Close: 29.21 28.46 28.15
Volatility: 14 27 31
Volume: 7,964,719 9,993,346 12,852,478

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.


BANK OF AMERICA is currently 3.7% 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 moderate flows of volume into BAC.N (mildly bullish). Our trend forecasting oscillators are currently bullish on BAC.N and have had this outlook for the last 18 periods.

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