Bank of America (BofA) is included in investors’ most active stocks today, which rallied more than 4% on a heavy trading volume amid session as speculations grew that Donald Trump’s victory could send poor bank regulations and put pressure on Janet Yellen as well as push rate hikes at a faster pace.
Evidently, BofA is among the leading financial sector this afternoon session.
With a technical trajectory approaching into today’s financial sector rally, it seemed that it isn’t surprising enough in spite of BofA’s recent outperformance. The bank has been seen in a bullish tone since July, with shares testing fresh 52-week highs at $18 this afternoon.
It seemed that investors are still closely watching on BofA stock in the months ahead.
Trump to Double Bank of America Corp Stock
Although Bank of America Corp stock had outperformed the market during the course of Wednesday’s session, BAC stock, including the bank stocks in general, exemplifies one of the few giant industries that are not trading nearly at all-time highs.
Economists claimed that these could all change very soon with Trump being in charge, citing BofA stock is expected to double under his lead.
It is very clear that banks will be held responsible for the worst financial crisis since the Great Depression, and reduction of tough policy could repeat a disappointing history. However, Trump doesn’t mean “do away with all oversight”, rather to get rid of the lapses that hinders banks from lending, making money, and being an asset towards economic growth.
Shares of Bank of America Corp hit a fresh 52-week high and a target price of $22.37 or 28.00% above today’s $17.48 share price. BofA risk is softened as stock movement posted seven straight bullish tone, settling at $176.48 billion.
Based on the analyst’s point of view, the company’s one-year high was reported on November 9, suggesting if the price target is met, the company will be worth more than $49.41 billion.
Among 22 analysts covering Bank of America, 13 of which gave “Buy” rating, 0 issued “Sell” rating, and 9 affirmed “Hold” rating, citing a 59% positivity on the stock. Meanwhile, the highest target price stood at $21, while $15 is the lowest.
The average target topped today’s stock price of $17.48, which stood at $17.89.
Current Stance of Bank of America Corp. Stock
The chart below illustrates Bank of America Corporation stock’s movement ahead of Donald Trump’s presidential win.
Given a bullish tone on the bank’s company shares, several investors are calling for Buying their shares. In essence, the stock price showed a significant gap and is far away from the support line.
Ahead of a bullish movement seen, stock prices significantly rallied in a light trading volume, but showed higher basis points of gap upward in today’s session.
Given Donald Trump’s presidential win, markets were clearly reacting. Thus, we conclude that Bank of America Corp. shares would decline as today’s stock tests its support level.
Moreover, raising of interest rates could be at a faster pace as Trump’s victory put pressure on the Fed’s chair Janet Yellen.
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