BAC Ahead of Earnings

12 de jul. de 2021

BAC

BAC has earnings on Wednesday and I thought I would give my thoughts on potential trades ahead of the big day.

Firstly on the 4h chart, I notice that the price is below the red line currently(red represents the 200 day moving average) which is a strong support/resistance zone. Right now the price is below the line and it acts as a resistance as seen in the months before as well.

Another thing of note is that BAC has beat earnings expectations for the last 5 quarters in a row, however, this does not always mean the price will go up afterward. The last quarter showed a large beat on expectations yet the price still went down.

If the price does break through the 200 day moving average after earnings, I would recommend a long position but currently I am advocating for a short also noting how much the company's price has grown in the past year (+68%).