During Thursday Mad Money The program Jim Cramer informed viewers about the gains of 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 got a higher and lower rate.
Check out the graphics.
In the daily bar table of BAC, below we can see a mixed image. Prices are on an upward trend above the 50-day rising mobile line. The 200-day moving average is positive and crosses into the $ 29 area.
The equilibrium volume line (OBV) shows a positive trend over the last twelve months, but has not kept pace with price gains over the last two and a half months. The Moving Average Convergence Divergence (MACD) oscillator shows weakness from March to April and is a bearish divergence compared to the price movement.
In BAC’s weekly table of Japanese chandeliers, below we see some clues worth noting. Prices have doubled from March 2020 lows. BAC is trading above the 40-week rising mobile line, but the three recent candlesticks suggest there is a higher investment.
The OBV line shows a small lower turn and the MACD oscillator has started to decline, which means that the strength of the trend is weakening.
Below, in this daily chart of BAC points and figures, we can see a potential upward price target of $ 50. A trade at $ 37.85 could start to weaken this chart.
Background strategy: BAC is pointed at a possible $ 50 price target, but it looks like the trend is fading a bit. I’m still in no hurry to recommend the long side of BAC.
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