Bank of America Corporation (NYSE:BAC) seems undervalued compared to its peers

Bank of America Corporation (NYSE:BAC) seems undervalued compared to its peers

Bank of America Corporation (NYSE:BAC) seems undervalued compared to its peers

A glance over shares of Bank of America Corporation (BAC)price that shifted 3.83% away from 20-Days Simple Moving Average, 6.41% from 50-Days Simple Moving Average and separated 5.51% from 200 Days Simple Moving Average.

Bank of America Corporation (BAC) declared loss -0.03% in latest trading session with settlement price of $ 31.51. The stock’s changed hands 43.95 million shares in session while it possesses an average volume of 62.86 million shares. The stock of BAC switched 38.51% away from its 52 week minimum and distanced -4.66% from its 52 week peak. The Company kept a record of 10.13 billion was near 10.18 billion shares outstanding.

Overall, the bias in prices is: Upwards.

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

By the way, prices are vulnerable to a correction towards 30.18.

The projected upper bound is: 32.97.

The projected lower bound is: 30.74.

The projected closing price is: 31.86.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 3 black candles for a net of 3 white candles. During the past 50 bars, there have been 24 white candles and 25 black candles for a net of 1 black candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with BANK OF AMERICA), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.

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 83.0571. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 6 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 69.74. 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 94 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 128.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 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 22 period(s) ago.

Rex Takasugi – TD Profile

BANK OF AMERICA closed up 0.290 at 31.800. Volume was 41% below average (neutral) and Bollinger Bands were 32% wider than normal.

Open High Low Close Volume___
31.490 31.910 31.480 31.800 8,733,126

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

Moving Averages: 10-period 50-period 200-period
Close: 31.31 29.70 29.91
Volatility: 14 24 28
Volume: 11,009,901 14,809,183 15,640,802

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 6.3% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 17 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH