Bank of America Forecast: Shares Trade Near 56.00 as Buy Signal Holds

At the end of last week, the board of directors approved regulatory cash dividend transactions for eight series of preferred stock for July and August in the amount of 0.26–18.13 dollars per share: the maximum amounts will be paid on the 7.25% non-cumulative perpetual convertible preferred stock, Series L, on July 30; holders of the 6.625% fixed-rate Series OO will receive 16.56 dollars per share, while holders of the 6.250% fixed-rate Series UU preferred stock will receive 15.63 dollars per share on August 3. The remaining five series provide for payments of 0.26–0.37 dollars per depositary share.

The financial report for the second quarter will be published on July 14: according to forecasts, revenue may decline from 34.87 billion dollars to 30.12 billion dollars, while earnings per share (EPS) may rise from 0.89 dollars to 1.10 dollars year-on-year. In addition, dividends on common stock are scheduled for June 26, when shareholders will receive 0.28 dollars per share, equivalent to a yield of 2.07%, slightly below the sector average of 3.03%.

Support and resistance levels

On the daily chart, the trading instrument is below the resistance line of the ascending channel with boundaries at 59.00–51.00.

Technical indicators are still maintaining a stable buy signal: the fluctuation range of the Alligator indicator is expanding in the direction of growth, the fast EMAs are above the signal line, while the AO histogram is forming upward bars in the positive zone.

Resistance levels: 56.70, 59.30.

Support levels: 55.00, 52.00.

Bank of America Corp. trading scenarios and forecast

Long positions may be opened after the price rises and consolidates above 56.70, with a target at 59.30 and a stop-loss at 55.50. Expected timeframe: 7 days or more. Short positions may be opened after the price declines and consolidates below 55.00, with a target at 52.00. Stop-loss — above 56.50.