During Thursday Crazy money Jim Cramer told viewers of the gains from Bank of America (BAC) and Citigroup (C), which saw their shares fall on the news.
Cramer said the market is wrong at Bank of America, which has a higher and lower rate.
Let’s check the graphs.
In the daily bar chart of the BAC, below, we can see a mixed image. Prices are on an upward trend above the 50-day moving average. The 200-day moving average line is positive and intersects in the $ 29 area.
The On-Balance-Volume (OBV) line shows a positive trend in the last 12 months, but has not kept pace with price increases in the last two and a half months. The Moving Average Convergence Divergence (MACD) oscillator shows weakness from March to April and this is a downward divergence compared to the price movement.
In the weekly chart of the Japanese candlesticks in the BAC, below, we see some clues worth noting. Prices have doubled from March 2020 lows. BAC is trading above the 40-week moving average, but the three recent candlesticks suggest a superior reversal at hand.
The OBV line shows a small turn below and the MACD oscillator has started to narrow, which means that the strength of the trend is weakening.
In this daily chart of BAC points and figures, below, we can see a potential price target upwards of 50 USD. A trade at $ 37.85 could start to weaken this chart.
Basic strategy: BAC is indicated with a possible price target of 50 USD, but the trend seems to be fading a bit. I’m in no hurry to recommend the long part of the BAC yet.
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