Bank of America Charts: Timing Is Key

By L.A. Little of tatoday.com, author of Trade Like the Little Guy.

In recent articles, I've examined Goldman Sachs(GS), Wells Fargo(WFC) and JPMorgan Chase(JPM). All of these names look good on a long-term basis, but all will most likely offer better prices for the purchase.

Let's look today at Bank of America(BAC). The bank, like the others, has the look of a good buy longer term. Identifying a good buy is one thing. Finding the right time and price to make the purchase is another. Let's see where that may be on BofA.

The monthly chart above tells us that prices are likely trapped in a very large consolidation area that spans from around $11.50 to $18.

The fact that volume has tapered off while prices have began to move sideways is typical. Extreme price volatility has given way to just occasional price volatility. Like so many stocks in the current market, prices continue to hang at the high end of the consolidation range.