The shares of Bank of America Corp., the largest US financial conglomerate, are trading sideways at 30.00.
The main news was a sharp decline in the quotes of one of the leading players in the venture capital market, Silicon Valley Bank. Although he had about 200.0B dollars on its balance sheet, ranking 16th among the largest financial companies in the country, the negative dynamics of the securities were enough to start a wave of negative sentiment among investors who began to withdraw their deposits in other large banks. Representatives of the American regulator promptly reacted to the situation and said that a system is being worked out, under which even depositors with a deposit exceeding 250.0K dollars will remain protected. Also, the agency will allow banks to borrow from the US Federal Reserve for unlimited amounts that can be secured by securities. Now, the situation looks stable but the management of Bank of America Corp. worries that the measures may not work on individuals who will continue to withdraw deposits, disrupting the stability of the financial system.
On April 18, the report of the corporation for the first quarter of 2023 will be published. The current situation has not yet affected the forecasts of experts, and analysts expect revenue of 25.5B dollars, up from 24.53B dollars a quarter earlier, and earnings per share of 0.85 dollars, comparable to previous figures.
On the daily chart, the trading instrument is moving within the global Expanding formation pattern, and reached the support line yesterday.
Technical indicators are not very informative due to a sharp drop in stocks against the backdrop of fundamental factors: the range of EMA fluctuations on the Alligator indicator remains wide, and fast EMAs are below the signal line. The AO histogram forms corrective bars in the sell zone.
Resistance levels: 31.00, 34.00. | Support levels: 29.00, 26.00.