Bank of America is the latest in the banking group to report its results -- following JPMorgan Chase (JPM - Get Report) , Goldman Sachs (GS - Get Report) and Citigroup (C - Get Report) -- with the reaction for the group so far tipping to cautious bullishness.
In the case of Bank of America stock, shares are now teetering on a possible breakout. Should the stock push through resistance, BAC could make an even higher run. If it can't, shares may remain range-bound going forward.
Given this ultimatum, it's a fitting candidate for Real Money's Stock of the Day.
Of course, a solid earnings report helps the bullish argument. Earnings of 75 cents a share beat estimates by 7 cents, while revenue of $22.8 billion beat estimates by $70 million. Warren Buffett also filed a request to increase his firm's stake beyond 10%.
Let's look at the charts.
Trading Bank of America Stock
As you can see on the daily chart above, Bank of America stock is trading right into range resistance.
The earnings are solid and Buffett wants more stock. Earlier this year, BofA gave an encouraging boost to its buyback and dividend. Clearly, the catalysts are here for BAC stock, which is why investors are understandably bullish.
But if the stock can't push through range resistance near $30.50 and the top end of the range at $30.80, Bank of America stock may stall out yet again.
Don't mistake that for a bearish take, either; It's just what the charts are saying.
If BAC stock can push through range resistance, the 52-week high from April at $31.17 is the next upside target. Above that and $32+ is on the table, with long-term traders aiming for $32.70, where shares continually topped around in Q1 2018.
Since hitting those highs almost two years ago, BofA stock has been consolidating in a sideways pattern. A move over resistance could trigger the breakout that's needed to get shares back up that range.
On the plus side, shares were putting in a series of lower highs and higher lows (blue lines), forming a wedge pattern. With BAC's rally, it pushed through the resistance side of that wedge.
It would be constructive to see Bank of America stock stay above this mark now. Below it puts rising uptrend support in play, as well as the 50-day and 200-day moving averages. While range support down near $26.30 is a possibility, it's a long shot for now.