Will Bank of America Corporation (BAC) Short Squeeze Soon? The Stock Formed a Bullish Descending Triangle Chart Pattern

June 20, 2018 - By Ann Prendergast

Bank of America Corporation (NYSE:BAC) Logo

Investors sentiment decreased to 0.95 in Q1 2018. Its down 0.24, from 1.19 in 2017Q4. It worsened, as 73 investors sold Bank of America Corporation shares while 633 reduced holdings. 134 funds opened positions while 535 raised stakes. 6.66 billion shares or 2.67% less from 6.85 billion shares in 2017Q4 were reported.
Trustmark National Bank Department reported 244,346 shares. Freestone Cap invested in 0.13% or 72,308 shares. Raymond James Advsr Incorporated has invested 0.35% of its portfolio in Bank of America Corporation (NYSE:BAC). The Virginia-based Burke And Herbert Natl Bank And Trust Com has invested 1.32% in Bank of America Corporation (NYSE:BAC). 436,114 are owned by Cobblestone Ltd Liability Com. Pennsylvania-based Beach Management Limited Liability Corporation has invested 3.3% in Bank of America Corporation (NYSE:BAC). Oh Adv holds 0.35% of its portfolio in Bank of America Corporation (NYSE:BAC) for 15,621 shares. Daiwa Gp holds 1.36 million shares or 0.33% of its portfolio. Sather Financial Group has invested 2.56% of its portfolio in Bank of America Corporation (NYSE:BAC). Locust Wood Advisers Lc, New York-based fund reported 1.08 million shares. Fort Point Cap Partners reported 0.19% stake. Hyman Charles D invested in 70,603 shares. Lombard Odier Asset (Switzerland) Sa holds 56,391 shares. Signalpoint Asset Mgmt Ltd Liability holds 0.59% or 40,715 shares. Moreover, Whittier Trust has 0.16% invested in Bank of America Corporation (NYSE:BAC) for 159,480 shares.

The stock of Bank of America Corporation (BAC) formed a descending triangle with $30.99 target or 6.00 % above today’s $29.24 share price. The 5 months triangle pattern indicates low risk for the $296.48 billion company. If the $30.99 price target is reached, the company will be worth $17.79 billion more.
The descending triangle is in our view more reliable than the ascending one. The descending triangle pattern has break even failure rate for up and down breakouts of 7% and 16%, respectively. The average rise and decline is 47% and 16%. The throwback or so called pullback rates are: 37% and 54%. The stocks meeting their targets is high for this type of breakout: 84% and 54% percent.

The stock decreased 0.07% or $0.02 during the last trading session, reaching $29.24. About 52.21M shares traded. Bank of America Corporation (NYSE:BAC) has risen 29.72% since June 21, 2017 and is uptrending. It has outperformed by 17.15% the S&P500.

Analysts await Bank of America Corporation (NYSE:BAC) to report earnings on July, 17. They expect $0.63 EPS, up 36.96 % or $0.17 from last year’s $0.46 per share. BAC’s profit will be $6.39 billion for 11.60 P/E if the $0.63 EPS becomes a reality. After $0.62 actual EPS reported by Bank of America Corporation for the previous quarter, Wall Street now forecasts 1.61 % EPS growth.

Bank of America Corporation (NYSE:BAC) Ratings Coverage

Among 13 analysts covering Bank of America (NYSE:BAC), 8 have Buy rating, 0 Sell and 5 Hold. Therefore 62% are positive. Bank of America had 16 analyst reports since December 21, 2017 according to SRatingsIntel. The rating was maintained by Credit Suisse on Friday, March 16 with “Outperform”. Keefe Bruyette & Woods maintained the shares of BAC in report on Wednesday, April 4 with “Buy” rating. The rating was maintained by Sandler O’Neill with “Buy” on Tuesday, January 9. The company was maintained on Tuesday, April 24 by Citigroup. The firm earned “Buy” rating on Monday, April 16 by Vining Sparks. Nomura maintained it with “Buy” rating and $3700 target in Monday, April 16 report. As per Thursday, December 21, the company rating was maintained by Keefe Bruyette & Woods. The rating was maintained by Jefferies with “Buy” on Monday, April 16. Societe Generale downgraded it to “Hold” rating and $33.0 target in Tuesday, January 9 report. The firm earned “Buy” rating on Friday, January 19 by Sandler O’Neill.

More notable recent Bank of America Corporation (NYSE:BAC) news were published by: Seekingalpha.com which released: “Citi warns on bank job automation” on June 12, 2018, also Bizjournals.com with their article: “Banking Roundup: Joint health-care venture names CEO… Citigroup interest rate settlement… Wells Fargo cuts jobs” published on June 20, 2018, Bizjournals.com published: “CBJ Morning Buzz: Big changes for BofA workforce; Meck County approves tax hike; Latest on CLT snafu” on June 20, 2018. More interesting news about Bank of America Corporation (NYSE:BAC) were released by: Investorplace.com and their article: “5 Top Stock Trades for Thursday Morning” published on June 13, 2018 as well as Seekingalpha.com‘s news article titled: “Bank of America’s virtual financial assistant gets over 1M users” with publication date: June 12, 2018.

Bank of America Corporation, through its subsidiaries, provides banking and financial services and products for individual consumers, small and middle-market businesses, institutional investors, large firms, and governments worldwide. The company has market cap of $296.48 billion. It operates through four divisions: Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets. It has a 16.96 P/E ratio. The Consumer Banking segment offers traditional and money market savings accounts, CDs and IRAs, noninterest- and interest-bearing checking accounts, and investment accounts and products, as well as credit and debit cards, residential mortgages and home equity loans, and direct and indirect loans.

Bank of America Corporation (NYSE:BAC) Institutional Positions Chart

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