Bank of America
Yesterday couldn't have been more different for Bank of America (BAC - Get Report) -- shares of the $112 billion banking stock rallied 5.66% in yesterday's session, adding onto the enormous gains that this stock has churned out since the start of the year. Bank of America has more than doubled since the first trading day in January. Now, shares could be headed for higher ground still...
We last looked at BofA a month ago, when the ascending triangle pattern in shares was just setting up. At that point, I said that a move above $10 was where you'd want to be a buyer -- well, yesterday's price action certainly showed why.
At this point, late-to-the-game traders still have a shot at jumping onboard BofA, but I'd recommend waiting a little longer before trying to be a buyer. After such a large move, it's not uncommon for a stock to do a "throwback," falling back down to newfound support (at $10 in BAC's case) before continuing higher. I'd be looking for that to happen before buying this stock; then, I'd put a protective stop just under the 50-day moving average.
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