Thursday, 12 October 2017

BAC - leaning weak into earnings

Whilst the main market only closed fractionally lower, there was significant weakness in Bank of America (BAC), which settled lower by -1.5% to $25.45. Earnings (due Friday morning) will likely be fine, but the stock looks near term vulnerable to the low $24s.

BAC, daily

BAC, monthly


Suffice to add, s/t bearish to the $24s, but mid term... I'm effectively hyper bullish. First big target is the psy' level of $30, and then the $33s. If you believe the US/world economy will tick along for another 2-3 years, then BAC could be seen to eventually challenge the 2007 historic high of $45.15.

As an aside, today's settling bearish engulfing candle in Citigroup (C) was rather interesting.

First soft support is the $70 threshold, then 67/66, with the 200dma in the $63s.

Of the financials, I favour BAC and JPM, not that I'd argue C, MS, or GS aren't 'okay'.