BAC: Checking In on Bank of America's Stock

Posted Apr 5th 2011 10:00AM by Steven Mallas
Filed under: Bank of America (BAC), Technical Analysis

Bank of America (BAC) is a pretty big player in its industry; it's got brand equity -- everyone has heard of it. How is its stock looking these days?

At the time of writing, shares could be had for $13.44. The 52-week low for the company is $10.91; the 52-week high is $19.86. That's a tight range, and as one might imagine, this company has been a vehicle for traders trying to ride whatever volatility is available at any given time.

I've been thinking about the financial industry lately, with Bank of America being of particular interest. Ted Allrich wrote a nice summary of the bank's current situation. Also, Brent Archer highlighted CEO Brian Moynihan's glowing commentary on the positive prospects for the company's future.

I do believe that investors and traders alike need to be ahead of the curve, to state the extremely obvious. With that in mind, an idea like Bank of America can be considered.

But I just can't shake my bearishness with this one after considering it. While I would like to buy low, I'm not a fan of the chart. And I don't like where the price is right now. I think the stock may still be too high.

Give me another dollar or two on the downside for a little more margin of safety and I would be happier. Am I being too conservative? It's possible, but that's how I feel today based on my reading of the technical environment surrounding the stock.

Disclosure: I don't own any company mentioned; positions can change without notice.

Tags: bac, bac stock price, Bank of America, Brian Moynihan, featured, financial stocks, inthenews