Thursday Crazy money program Jim Cramer told viewers about the earnings of Bank of America (BAC) and Citigroup (C), both of which saw their share of the news fall.
Cramer said the market is wrong with Bank of America, which delivered a top and bottom line beat.
Let’s take a look at the graphs.
In BAC’s daily bar chart below, we see a mixed picture. Prices are on an upward trend above the upward trend of the 50-day moving average. The 200-day moving average line is positive, cutting into the $ 29 area.
The On-Balance-Volume (OBV) line has shown a positive trend over the past 12 months, but has not kept up with the price gains of the past two and a half months. The Moving Average Convergence Divergence (MACD) oscillator is showing weakness from March to April and that’s a bearish divergence compared to the price move.
In BAC’s weekly Japanese candlestick chart, below, we see some pointers worth pointing out. Prices have doubled from their March 2020 low. BAC is trading above the rising 40-week moving average, but the three recent candle bars suggest a top reversal is imminent.
The OBV line shows a slight turn lower and the MACD oscillator starts to narrow, which means that the trend strength is decreasing.
In this daily point and figure chart from BAC, below, we see a potential upward price target of $ 50. A trade at $ 37.85 could weaken this chart.
Bottom-line strategy: BAC is facing upward with a possible $ 50 price target, but the trend seems to be fading a bit. I’m in no rush to recommend the long side of BAC.
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