Disclaimer: This content is for educational and informational purposes only and does not constitute financial, investment, or trading advice.
BAC (Bank of America)
Ticker: BAC
Bias: Bullish trend continuation
Strategy: Trend-following + mean reversion
Bank of America is showing a high-confidence bullish continuation setup following a healthy pullback within a strong multi-timeframe uptrend.
Thesis Summary
Bank of America (BAC) rejected a bearish Three Black Crows pattern at key support levels, holding both the $55 psychological level and the rising 20-day SMA before breaking above the 9-day EMA on increasing volume. Given the intact higher-high and higher-low structure on the daily chart and clear trend alignment with the weekly timeframe, the recent pullback appears corrective and favors a bullish trend continuation setup.
🎯 Suggested Trade Levels (for reference only)
Entry: $55.75
Stop-Loss: $55.45
Target: $57.45
Levels are based on current technical structure and support/resistance zones. Manage risk accordingly.
Key Technical Signals
Bullish Rejection of Three Black Crows: A strong bullish candle decisively rejected the Three Black Crows bearish reversal pattern, signaling a failed reversal and a shift back in favor of buyers.
20-Day SMA (Middle Bollinger Band) Support Hold: Daily price found support at the rising 20-day SMA, reinforcing this level as trend support during the pullback.
Psychological Support at $55.00: Price also held and rebounded from the $55 psychological level, adding horizontal support confluence to the bullish setup.
9-Day EMA Breakout and Turn Higher: Price closed back above the 9-day EMA, with the EMA now angled upward instead of down, indicating improving short-term momentum.
Primary Daily Uptrend Intact: The daily chart continues to print higher highs and higher lows, confirming that the broader bullish trend structure remains intact.
Bullish Volume Growth: Relative volume increased on the bullish breakout above the bearish candles and the 9-day EMA, supporting the strength and conviction behind the move.
Higher Timeframe Trend Confluence: Both the daily and weekly trends remain firmly to the upside, providing higher-timeframe alignment that reinforces the bullish reversal and supports trend continuation potential.
Daily Chart Analysis (1D)
BAC | 1D Chart (TradingView)
On the daily chart, Bank of America (BAC) remains constructive within a broader uptrend. A short-term three black crows bearish sequence marked the recent pullback, but this weakness was decisively rejected as price found support near the $55 and the rising 20-day SMA (middle Bollinger Band). The strong bullish rebound signals trend support by bulls. The 9 EMA (purple) is flattening and beginning to turn higher, suggesting short-term momentum after consolidation. While price had previously ridden the upper Bollinger Band, the current price action reflects a mean reversion pullback rather than a trend reversal. Volume increased on the rebound relative to prior sessions, confirming renewed buyer interest. Overall, the structure favors bullish trend continuation as long as price holds above the 20-day SMA and the $55 support level.
Weekly Chart Analysis (1W)
BAC | 1W Chart (TradingView)
On the weekly chart, Bank of America (BAC) remains in a strong primary uptrend, with price consistently holding above rising short-term and intermediate-term moving averages. The stock recently pushed to new swing highs near the upper band Bollinger Band, followed by a modest pullback, which suggests consolidation rather than trend exhaustion. Higher highs and higher lows remain intact, momentum is steady, and the broader structure favors a bullish trend continuation as long as price holds above the rising weekly support levels.
Sentiment Analysis Summary
The overall sentiment towards Bank of America (BAC) is predominantly positive, driven by strong earnings, institutional confidence, and a stable operational outlook. Despite some caution regarding consumer credit stress and potential valuation concerns, the company is seen as a favorable investment option moving into 2026. The anticipation of interest rate adjustments and trade policy changes adds to a mixed yet generally bullish outlook. Below are the key sentiment signals supporting this view:
Bank of America shares have shown resilience, climbing 1.73% as Treasury yields rise, reflecting positive market conditions for bank stocks.
Institutional investor confidence remains strong with over 70% ownership, as firms like Synergy Asset Management and Simon Quick Advisors significantly increase their stakes.
Bank of America reported strong Q3 earnings with a 10.8% revenue increase and exceeded EPS estimates, indicating strong financial health.
Bank of America's diversification strategy and transition into asset management with crypto allocations may enhance its appeal to a broader investor base.
Despite some institutions trimming their positions, analyst sentiments are favorable, with a consensus 'Moderate Buy' rating and an average price target of $58.59.
Fundamental Analysis Summary
Bank of America (BAC) demonstrates strong operational fundamentals with increasing revenue and net income, suggesting a bullish overall outlook. However, the decline in cash reserves and dividend yield are concerns that could affect investor confidence. Monitoring these factors alongside debt levels is important for assessing future performance. Below are the key fundamental signals supporting this view, based on TTM YoY fundamentals (Q3 2025 vs Q3 2024):
Revenues are up by 8.90%, indicating healthy business operations.
Net income increased by 25.56%, reflecting a strong profitability trend.
Positive cash flow from operations at $61.47 billion showcasing robust operational efficiency.
EPS increased by 33.81%, indicating strong earnings growth.
ROE improved to 9.50%, suggesting a higher return on shareholder investment.
Brainlet Meme of the Day!
Remember: Protect your capital, the best loser wins.
Same market. Very different thinking.
Liquidity provider spotted.
Thank you for being a Stocksift subscriber!
We hope you enjoyed this issue!
Best,
The Stocksift Team
