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Marco is a trader of stocks, options, currencies, and futures. He has been fascinated with the financial markets ever since he bought his first stock at 11 years old. Marco entered the business world at the age of 13, with the creation of an extremely successful retail website... More
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  • Bank of America: Can the Monster Bank Follow the Trend of the Other Financial Giants? 0 comments
    Apr 19, 2009 7:48 PM | about stocks: BAC, V, GS, MS, C, WFC, JPM

    In the past 2 weeks we've heard from Wells Fargo (NYSE:WFC), JP Morgan Chase (NYSE:JPM), Goldman Sachs (NYSE:GS), and Citigroup (NYSE:C). This week we'll hear from Bank of America (NYSE:BAC) and Morgan Stanley (NYSE:MS). I feel BAC should easily beat estimates, like the other giants under the new relaxed accounting rules. BAC's forecast will certainly be the key that drives the market tomorrow, because this market it getting tired. I have been studying the chart for Bank of America today (as seen below) and I think if we can get BAC above 12 a share we'll have a good shot of going higher in the weeks to come.

    I think if we get through 12 it is important to test the 12 level, forming a clear double bottom with BAC price from the previous market bottom on November 21, 2008. The critical support level is the 8.50 range and we may test it but it is very important to stay above it. If we can get through 12 a share, it looks like we could get to 14.50 range without any major resistance, and then 15.50 range. Looking ahead it looks like we'll need to break above 18.50 and retest that level to move higher in the future. A clear double bottom was formed from lows in July and October, but we broke below it. However as I've said before, we can go up just as fast as we went down, and we could be back at 18 range before we know it. We'll see how the stock reacts tomorrow on their earnings report and forecast to see where we might be headed in the weeks to come. I think overall tomorrow should be another very volatile day, so buckle up.

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