Bank of America Corp (NYSE: BAC) will announce its first-quarter earnings on April 16. Wall Street expects 77 cents for EPS and $25.4 billion in revenues as the company reports before market hours.
Bank of America stock is up over 25% over the past year, 6.3% YTD.
Here's how the stock's technicals are set up ahead of earnings.
Bank of America Stock Technical Setup Ahead Of Q1 Earnings
The technical analysis of Bank of America stock suggests a moderately bearish, with slight selling pressure.
Bank of America's share price of $36.13 is below its 8-day and 20-day simple moving averages (SMA), signaling a bearish trend. However, it is above its 50-day SMA, indicating a bullish signal. Moreover, Bank of America's share price exceeds its 200-day SMA, reinforcing a bullish sentiment.
In terms of exponential moving averages (EMA) too, Bank of America's price is below both the 8-day and 20-day EMAs, suggesting a bearish trend. However, it remains above the 50-day EMA, implying a bullish signal.
The Moving Average Convergence Divergence (MACD) indicator stands at 0.28, further supporting a bullish sentiment. However, the Relative Strength Index (RSI) of 47.66 suggests that Bank of America is oversold.
The Bollinger Bands indicate a bearish sentiment. After treading in the upper bullish band for the past few months, Bank of America's price has recently moved to the lower band, reinforcing the bearish sentiment. Overall, the technical setup appears more bearish than bullish currently for Bank of America stock.
Investors may want to wait for potential bullish opportunities for Bank of America stock.
Analysts Consensus Ratings
Ratings & Consensus Estimates: The consensus analyst rating on Bank of America stock currently stands at Overweight with a price target of $35.36. Recent analyst ratings on the stock from Jefferies; Keefe, Bruyette & Woods; and Evercore ISI Group, have an average price target of $39, with an implied 7.79% upside.
The upcoming earnings release for Bank of America has the potential to significantly influence trader sentiments. As market participants await the earnings numbers, they will likely weigh this data alongside the technical signals to determine the stock's trajectory in the short term.
BAC Price Action: Bank of America stock was trading up o.36% at $35.92 at the time of publication Monday.