Despite being one of the most important financial institutions in the United States, the bank’s relationship with government leadership is strained. Earlier this year, President Donald Trump criticized Bank of America’s management for its alleged negative stance toward the Republican Party — a move analysts believe was a key factor in the administration’s refusal to extend certain development loans.

This situation could persist amid the recent decision to privatize two major mortgage companies, Fannie Mae and Freddie Mac, which suffered heavily during the 2008 financial crisis and have since relied on government support. Trump has called for these enterprises to be removed from subsidies and listed on the stock exchange via initial financing from large national banks, including Bank of America. However, after private discussions with the company’s leadership, the White House began exploring alternative partners, holding talks with Goldman Sachs and Citigroup.

Bank of America’s Q2 earnings report, released at the end of July, showed revenue falling to $26.5 billion, down from $34.07 billion in Q1 but above the $25.4 billion recorded in the same period last year. Earnings per share came in at $0.89, beating forecasts of $0.86 and last year’s $0.83.

Support and Resistance Levels

On the daily chart, the price is trading above the support line of the downward channel, with boundaries at 48.00–44.00.

Technical indicators have yet to reverse, maintaining a steady sell signal in anticipation of continued downside movement:

  • The EMA range on the Alligator indicator is widening downward.

  • Fast moving averages remain below the signal line.

  • The AO histogram is in negative territory, forming new red bars.

Support levels: 44.70, 42.50.

Resistance levels: 47.20, 49.20.

Bank of America

Trading Scenarios

    • Entry: 44.70

    • Take Profit: 42.50

    • Stop Loss: 45.50

    • Timeframe: 7 days or more

      Primary Scenario – Sell Stop:

      If the decline continues and the price consolidates below the local low of 44.70, short positions will be relevant with a target at 42.50.

    • Entry: 47.20

    • Take Profit: 49.20

    • Stop Loss: 46.60

      Alternative Scenario – Buy Stop:

      If the price rises and consolidates above the local high of 47.20, long positions will be relevant with a target at 49.20.

Key levels: 42.50, 44.70, 47.20, 49.20