Tuesday, 23 August 2016

BAC - financials remain poised

Whilst the main market closed a little higher, there was more notable upside in Bank of America (BAC), which settled +1.2% @ $15.36. The financials are unquestionably still struggling as int' rates remain at emergency levels. However, a second rate rise before year end would certainly give the excuse for a break 'up and away'.

BAC, daily

BAC, monthly


Suffice to add... short term, BAC is now trading above the late April high. Next resistance is not until the mid/upper $17s.

Critical resistance remains around the $18 threshold. Any monthly close >$18 would be extremely bullish for financials, and the broader US market in 2017.

*of the financials in the Dow, BAC remains my most favoured.