Bank of America
At first glance, Bank of America (BAC) has had some pretty strong stock performance in 2013 -- until you look at the rest of the financial sector, that is. While the big bank is up almost 15% since the start of the year, the Financial Select SPDR ETF (XLF) has rallied more than 20% over that same timeframe. That's huge outperformance -- and BAC looks like it's about to start making up the difference in May.
Bank of America has spent most of this year consolidating sideways in a channel between $11 and $13. But early this week, BAC broke out of the channel to the upside, triggering a buy signal in the big bank. That breakout points to the uptrend from the latter half of 2012 resuming this summer.Consolidation channels like the one BAC had been in aren't uncommon -- they're a way for a stock to burn off some overbought momentum after a big move higher. Now that BofA has had a chance to move sideways, traders are making a stand above $13. Now looks like a good time to be a buyer. Just keep a tight stop in place if you decide to jump in here.
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