Bank of America (BAC) is benefiting from the improvement in the global mergers and acquisitions market, leading to higher advisory fees. Further, higher demand for credit cards and personal loans is aiding BAC’s revenue growth. Also, the company’s recent strategic acquisitions, such as the $9 billion mortgage deal with TD Bank (TD), help bolster its growth prospects. BAC stock has surged 23.76% over the past six months. Despite these gains, technical indicators suggest that BAC stock is a Strong Buy, implying further upside from current levels.
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Analyzing Bank of America’s Technical Indicators
According to TipRanks’ easy-to-understand technical analysis tool, Bank of America stock is currently on an upward trend. The stock’s 50-day Exponential Moving Average (EMA) is 45.67, while its price is $46.67, implying a bullish signal. Further, its shorter duration EMA (20 days) also signals an uptrend.
Another technical indicator, Williams %R, helps traders determine if a stock is overbought or oversold. In the case of BAC stock, Williams %R currently indicates a Buy signal, suggesting that the stock is not overbought and has more room to run.
Further, the Rate of Change (ROC) is a momentum-based technical indicator used to measure the percentage change in stock’s price between the current price and the price from a specific number of periods earlier. Typically, a ROC above zero confirms an uptrend. BAC stock currently has a ROC of 1.87, which signals a Buy.
What Is the Price Target for BAC Stock?
Turning to Wall Street, BAC stock has a Strong Buy consensus rating based on 18 Buys and two Holds assigned in the last three months. At $52.86, the average Bank of America price target implies 13.26% upside potential.
