Bank of America
It's worth revisiting Bank of America (BAC - Get Report), a big name from last week's spotlight on banks. BofA has been in the headlines for all the wrong reasons lately, drawing ire from consumers and investors alike. But the trading setup in shares is still decidedly bullish.
The inverse head-and-shoulders we looked at last week completed its right shoulder in the days since, bringing this stock significantly closer to a breakout above the neckline. Regardless of what you may think about bank stocks, a rising tide could lift all ships this week -- and exhaustion among BofA sellers is palpable in this pattern.
Wait until shares break out above the neckline before taking a position in this stock. Then, I'd recommend keeping a tight stop just under the right shoulder -- headline and fundamental risks haven't disappeared just because this setup looks promising in the short term.Bank of America, one of David Tepper's top five Dow stocks, also shows up on a recent list of 10 Bargain Stocks Under $10.