Solid News

Bank of America Corp. Market Update

1/17/2023 3:40 PM

Quotes of stocks of Bank of America Corp. resumed growth from mid-December and by the end of last week reached the area of 35.20.

Prices are supported by two main factors – positive financial statements for Q4 2022 and the likelihood of a slowdown in the pace of monetary policy tightening by the US Fed. After the reduction of inflationary pressure in the US economy in December, investors are confident that the regulator will raise the interest rate by only 25.0 percentage points at the next meeting instead of 50.0 percentage points. Such actions by officials should reduce the risks of a serious economic downturn, which pushes up the stock market.

The financial data of Bank of America Corp., published last Friday, turned out to be better than experts' forecasts. Thus, earnings per share amounted to 0.85 dollars instead of the expected 0.77 dollars, and revenue reached 34.66B dollars instead of the projected 24.33B dollars. An increase in interest income due to higher interest rates and in the volume of lending contributed to the improvement of indicators. The bank's net interest income amounted to 14.7B dollars, which is slightly less than the estimated 14.8B dollars, but still 29.0% more than last year. Nevertheless, the management predicts a deterioration of the situation in the near future. In particular, the CEO Brian Moynihan said that the bank is preparing for a potential moderate recession this year. Interest income in Q1 may decrease significantly, and the volume of outstanding loans may increase.

Technically, the price has broken above the reversal level of 34.38 (Murray level [6/8]) and may continue to move towards 37.50 (Murray level [8/8]) and 38.60 (the area of November highs). The key for the "bears" is the average line of Bollinger Bands in the area of 33.20, consolidation below it will give the prospect of a price return to the level of 31.25 (Murray level [4/8]), however, this option of price movement still looks less likely, since technical indicators confirm the continuation of an upward trend in the market: the Bollinger Bands and the Stochastic are reversing upwards, and the MACD histogram is increasing in the positive zone.

Resistance levels: 37.50, 38.60. | Support levels: 33.20, 31.25, 29.69.

Find Us
Registered Address : Bonovo Road – Fomboni Island of Mohéli – Comoros Union
Sofia, PO Box 1407,14 Flip Kutev Str. Floor 2, Industrial area Hladilnika, Bulgaria
Call Us
+35 924 928 392

Risk Warnings
Solid ECN Securities LLC offers trading on Foreign Exchange (‘Forex’ or ‘FX’) and Contracts for Difference (‘CFDs’), which are complex financial products that are traded on margin. They carry a high level of risk since leverage can work both to your advantage and disadvantage. As a result, these products may not be suitable for all investors, as loss of all invested capital may occur. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved and consider your investment objectives and level of experience. Seek independent advice, if necessary.
Solid ECN Securities LLC does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. Solid ECN Securities LLC is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.
This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.
By using you agree to use our cookies to enhance your experience.
Solid ECN Securities LLC is authorized and regulated by the Comoros Union with reference number HY00623411.
Disclaimer 1: The information provided on this site is not intended for residents of any country or jurisdiction where its distribution or use would violate local laws or regulations.
Disclaimer 2: Solid ECN Securities LLC and it affiliates does not provide services to residents of the USA, Japan, Canada, Australia, the Democratic Republic of Korea, European Union, United Kingdom, Iran, Syria, Sudan and Cuba.
Copyright All Right Reserved 2024