Bank of America to Continue Bullish Momentum
Analaysts at Bidness Etc expects a continuation of the bullish momentum in Bank of America stock.
In recent months, Bank of America Corporation stock has been facing upward trend. The share started the year with an outstanding $17.90 mark, but reached its year to date low of $15.15 per share on 30th January. Since last month, BofA stock has started to get green again and has increased 5%.
Earlier last week, in a research note, it was revealed that Bank of America has shifted up a rank in its foreign exchange industry share. The American bank placed sixth in a list published by Euromoney Institutional Investor, along with a total market share of around 6%.
As pointed out in previous technical analysis report by Bidness Etc, Bank of America soaring higher than the long term averages of 100 & 200 DMAs combined with the price range of $16.37 and $15.95 has allowed a gateway above $16.68 . This enhances the confidence of analysts’ estimation that the ultimate led of intermediate consolidation has finished and the company is all ready to challenge the December high of $18.15. In the coming period, analysts expects stock price to endure bullish momentum to $17.79. A stop towards the Dec 2014 high will clear the way to $19.59 to $21.74 price range. Instant support is witnessed near $16.67 and $15.99 which is going to neutralize any sort of selling pressure. Only a disruption below the last support will move the analysts’ viewpoint to Neutral from Bullish.
The plan will be to purchase stock on dips, aiming $17.79 and $19.59 with threat below the stock price of $15.99.
Recently, Bank of America finished a case regarding the foreign exchange market manipulation together with five other international banks. These banks paid approximately $5.6 billion in penalties. BofA’s fine was comparatively much lower than the other banks involved in the case, it only paid $205 million and is reported to have made enhancements already to its control.
The company’s stock has enticed substantial analysts’ attention this year. In a latest research report by Bernstein, BofA is most likely to get 1% return on asset in almost 2 to 3 years. The equity research company is bullish on the bank’s future performance.
As per Bloomberg, most of the analysts covering the stock of Bank of America recommended a rating of Buy; almost 18 out of 42 suggested a Hold, while remaining four gave Sell rating to the stock. The twelve month stock price objective stands at $18.46.
