Bank of America (BAC) - Get Report has been moving well since the opening bell. With bonds once again soft, the entire banking sector is getting a boost. The stock is up more than 2% and is now trading just below its June peak. If shares can continue to build momentum, a powerful fresh rally leg could be just around the corner. Once past the April high, BAC has plenty of room to run. 

Three weeks after BAC reached new post-election highs in early March, the stock suffered a steep drop. Since the March 21 selloff, the stock has been stuck in a narrow consolidation pattern. The lower band of this healthy sideways pattern, which followed a 52% post-election gain, has been well contained by the January low. All of the last four monthly lows have held this major support zone. If BAC can manage a breakout soon, a very solid base will be in place, one that could provide the footing for a huge rally.

BAC is currently still range bound but is set up well for an upside breakout. Investors should consider the stock a low-risk buy near current levels. A key level to monitor is $24.50. Once past this area, BAC will have clearly taken out the May and April highs and will have room to run. On the downside, a close back below $22.70 would violate this week's low, indicating more consolidation is ahead before a fresh rally leg can take hold.

Meanwhile, Jim Cramer and the AAP team dig into energy often. Get their insights or analysis with a free trial subscription to Action Alerts Plus.

Bank of America's shares were up 2.7% to $23.89 in postmarket-trading on Wednesday.

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At the time of publication, Morrow was long BAC.