Tuesday 28 November 2017

BAC - soaring on rate hike outlooks

It was a very bullish day for the financials, with Bank of America (BAC) settling +3.9% at $27.64. Many are now looking ahead to 2018, as most recognise rates are set to further increase, which is inherently bullish for all financials. M/t bullish, soft target $33s, and then 40/45.


BAC daily



BAC monthly



Summary

Across 2017 I noted the importance of the key $18 threshold, and how an upside break would have monstrously bullish implications for the mid term. We saw the breakout in Nov'2017, and that can be marked as month'1 UP.

Some 12 months later, BAC has seen the $27s. Next big target are the $33s... last seen in Dec'2008.

Higher rates are unquestionably bullish, and it looks safe to assume another 3-4 hikes next year. As things are, BAC is set for a third consecutive net monthly gain, and the $33 really do appear a given.