The stock of Bank of America Corp. (NYSE: BAC) is trading lower on Wednesday after the business reported weaker-than-expected second-quarter sales.
The company posted sales of $21.50 billion in the preceding quarter, which fell short of analyst expectations of $21.83 billion. The $1.03 per share profit topped the 77-cent forecast.
At the time of writing, Bank of America’s shares was down 2.9 percent to $38.68.
Also see How to Buy and Sell BAC Stock.
Analysis of Bank of America’s Daily Charts
For a long time, stocks had been trading in an ascending channel, but they appeared to have broken below the support recently.
The stock is trading below its 50-day moving average (green) but above its 200-day moving average (blue), indicating that it is in the midst of a consolidation period.
The 50-day moving average could operate as a barrier to entry, while the 200-day moving average could provide support.
Key Bank of America is a financial institution based in the United States Levels to Keep an Eye On
It’s probable that the stock will undergo a severe correction in the next weeks after dropping and breaking below support.
The Relative Strength Index (RSI) began to decrease and is currently approaching oversold territory. The RSI is currently at 37, and the oversold area begins at 30 and ends at 0.
What Does the Future Hold for Bank of America?
Bullish traders want to see the stock bounce and resume its upward trend. Bulls want to see the stock return to its upward moving channel and trade within it once more. The stock should also cross over the 50-day moving average, according to bulls.
The stock should stay below the channel, according to bearish traders. If the stock can hold below the channel, a further bearish push could be on the way. For the stock to turn negative, it needs to cross below both moving averages, according to bears.
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