Bank of America (BAC) has been struggling to keep up with the rest of the market this year.
While the broad market has slid more than 4% so far in 2010, the giant bank has seen its shares tumble more than 11%. That underperformance comes despite the fact that Bank of America sports an enormous deposit base, a newly acquired wealth management powerhouse and a dominant retail banking presence in a handful of key markets. Shareholders could see their patience vindicated next week -- in the short term, at least.
Shares of Bank of America hit support on Wednesday and are just starting to bounce higher. While the upside potential for this stock isn't mind-blowing right now, it shouldn't be eschewed; shares will likely make their way to moving average resistance at around $15.50 if the bounce holds up. Strong performance early in Thursday's trading makes it look like that's exactly what's going to happen starting today.
As always, if you want to bet on an upswing in this stock, it's essential to protect yourself. Place a stop right under support $13.45 if you decide to move on Bank of America.
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