Bank of America Pulling Back from Multi-Decade Resistance

bank america multi decade resistance
Middle East
  • Date: 02-Jul-2021
  • Source: Yahoo News
  • Sector: Oil & Gas
  • Country: Middle East
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Bank of America Pulling Back from Multi-Decade Resistance

Bank of America Corp. (BAC) reports Q2 2021 earnings in two weeks, with analysts looking for a profit of $0.76 per-share on $21.85 billion in revenue. If met, earnings-per-share (EPS) will mark a doubling in profit compared to the same quarter last year, which included the first exit from pandemic lockdowns. The stock rose modestly in April after beating Q1 top and bottom line estimates but has gained little ground since that uptick.

Commercial bank stocks rolled over in June when the bond market reversed, dropping interest rates across the yield curve by a few basis points. Right now, the decline looks like a countertrend impulse, suggesting that yields will go much higher in coming months. That would be good news for the banking industry because the widening spread between overnight lending rates and the prices paid by borrowers will increase profits.

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