The earnings report of the Bank of America Corporation (NYSE: BAC) will be heavily monitored today, as it is scheduled to be released before the US opening bell. It seems that there are concerns that the bank might not deliver great results, because of the pandemic, which affected the retail side of BofA. Also, the low interest rate environment is throwing a dark shade on the bank’s revenues, as domestic deposits diminish. However, investors still have hope that the BofA’s trading desk revenue will be able to offset the retail losses.
The technical picture shows that BAC is currently having a good run higher, after declining heavily in the end February and the beginning of March last year. The stock is now trading around February 2020 levels and continues to balance above a short-term upside support line drawn from the low of November 4th, what might be seen as a positive sign in the near term.
If the share price moves below the 32.71 hurdle, marked by last week’s low, it could fall a bit further. That said, as long as the stock stays above the aforementioned upside line, there is a decent chance for BAC to rebound and climb back above the previously-mentioned 32.71 zone. If so, BAC may rise to the 33.63 obstacle, a break of which could open the door for a move towards the current highest point of January, at 34.37, where the price may receive an initial hold-up.
Although the RSI is pointing slightly lower, it remains above 50. The MACD is also pointing a bit lower and sits below its trigger line, however it still remains above zero. The two indicators seem to be in support of the idea of seeing a small setback first, before another possible upmove.
In order to shift our attention to some lower areas, a break of the previously-discussed upside line would be needed. In addition to that, to strengthen the scenario of a potential move lower, a drop below the 30.57 zone, marked near the highs of December 28th and January 4th, may be required. BAC might then travel to the 29.75 obstacle, or to the 29.17 area, marked by the low of December 22nd. If that territory is not able to stop the slide, the next possible support could be at 28.15, marked by the lowest point of December.
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