Bank of America stock price is up 0.31% on Wednesday and currently trades at $25.55. The slight surge on the last day broke a five-day losing streak. However, the price is down over 7.5% in the past week.
Moreover, the price trend analysis of the Bank of America stock illustrates that the stock price resumed the fall after the quarterly results. The price recovered in the pre-earning sessions indicating a positive sentiment being built up.
However, the stock price showed no signs of continuing the recovery and slipped down. The quarterly results were outperforming in both terms of earnings and revenues. However, the stock price could not continue to recover and resumed its decline.
Bank of America Corp. Quarterly Earnings Analysis
Bank of America Corp. reported its third quarterly results on Tuesday, 17th October. The profits were up 10% as compared to last year. The reported revenues were $69.21 Million slightly better than the estimates. The earnings came out at $0.90 Million surprising the estimates by 8.85%.
The company did well in the current quarter. However, it could not halt the further decline of the BAC stock and the price resumed to form a new swing low.
Bank of America Stock Price Forms Declining Channel Pattern
Currently, the Bank of America share price seems to respect the boundaries of a declining channel pattern. The price has suffered multiple rejections from the upper and lower boundaries of the channel and declined.
Currently, the price is nearing the lower boundary of the channel and also reaching an important round number of $25. The $25 level might be a strong demand zone and the stock price may get the buyers’ support from there.
Furthermore, the BAC share price is still bearish as it has formed a new swing low. The price may show gains from a lower swing high and fall further.
The BAC Stock price also needs to accumulate enough buying volume to counter the sellers and break out of the declining channel pattern. The breakout above the declining channel may add more aggressive buyers and the stock price may show further gains.
Technical Indicators Show Continuation of Bearish Trend
The overall technical opinion rating including RSI and MACD signals a 90% “sell” with the strengthening short-term outlook on maintaining the current direction.
Conclusion
Bank of America stock price rose 7.59% on Tuesday after bouncing from a support trendline on Monday. The price increased 11% in two days. The price action in the current quarter shows a symmetrical triangle pattern, indicating a possible breakout or breakdown soon.
The long-term trend is bullish but the short-term trend is uncertain. The quarterly results on 3rd November may affect the price direction. The analysts expect a revenue of $286.13 Million and earnings of negative $0.318 Million.
Technical Levels
- Support levels: $24.81 and $23.12
- Resistance levels: $27.77 and $30.21
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/10/26/bank-of-america-stock-price-loses-despite-surprising-results/