NEW YORK (Real Money) -- Bank of America (BAC) - Get Bank of America Corp Report broke out Wednesday. The stock closed up 1.7% to $16.94 and is beginning to put some distance on the May peak. Volume was running fairly heavy. A better volume showing would be more encouraging, but the price action was excellent.

For the last four weeks, BAC has been in chop mode after an 8.5% rally off the April low. This sloppy consolidation remained just above the 200-day moving average. With this key long-term trendline underneath, the stock has been able to build a very solid short-term base.

All that was needed was a catalyst for shares to take advantage of this constructive setup. No question, the rate ramp over the last three days has lit the fuse.

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BAC has plenty of room to run. The stock is well below overbought levels and remains far below the 2015 peak. This year's high, which includes the 2014 peak, is a major resistance zone between $18 and $18.20. A rally back up to this level, for a very important retest, would take another 5% of upside.

In the near term, BAC has a very solid layer of support in the $16.50 to $16.85 area. I am long the stock, added a small amount Wednesday, and will do so again as the rally develops. Upside target is $18. A close back below $16.40 would do considerable harm to this fresh rally leg.

Editor's Note: This article was originally published at 1:57 p.m. EDT on Real Money on June 3.

This article is commentary by an independent contributor. At the time of publication, the author was long BAC.