Bank of America.

Company overview.

Regarded as one of the world’s leading financial institutions, Bank of America serves individual consumers, small and middle-market businesses, and large corporations with a full range of banking, investing, asset management, and other financial and risk management products and services.

They declare the following, on their website:

“Our decade-long focus on Responsible Growth allows us to be a source of stability for our customers and clients during challenging times, to continue supporting the communities in which we work and live, and deliver more consistent results for our shareholders throughout a well-understood risk framework. Our focus on ESG leadership has provided us with unique opportunities to deepen client relationships and create shared success with communities in which we operate.”

Is BAC a good pick?

Next year the Federal Reserve of the United States (FED), has indicated an increase in interest rates, let's not forget that they were lowered to levels of almost 0% during the pandemic, and remember that the business of banks is to lend money and earn through the interest generated, and according to a study published by the Wallstreet Journal last week, tells us that, just a 1% increase in interest rates would represent an increase of 7.16 Billion dollars for next year in BAC revenues. This gives us an idea of the lucrative business of international banking.

Technical Analysis.

In the last six months, BAC stock has been very volatile, but still continued in an uptrend. Looking at the chart we observe that in July the price went to a 25-week low at $36.50, but in November it had a great revaluation of 24%.

Currently, the stock is at $44.55, looking for indicator information on the chart, we find that the MACD is starting to cross to the upside of its signal and the RSI is coming out of the neutral zone to go up to the oversold zone, all this means that there are buyers and they want a piece of the pie, another important point is the resistance of the SMA50 that is so close to the price, and it is possible to break it, if the price continues with its same behavior of the last two weeks, which would help the price to take strength to reach the $48 dollars, which was the highest price in 2021.

For everything mentioned in this analysis, we expect a 9% appreciation in the next month, this is not investment advice, everyone has the final decision in their hands, thanks for reading, thanks for everything.