Bank of America Shares Poised to Plunge – June 24, 2014

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Bank of America Shares Poised to Plunge - June 24, 2014

Bank of America Shares Poised to Plunge - June 24, 2014

Bank of America shares have been selling off for the past three months, indicating that a longer-term downtrend is underway. Over the past weeks though, a pullback has taken place to the $16.00/share level, but it appears that the correction may be over soon.

Prices of Bank of America shares are stalling at the intersection of the simple moving averages on the daily time frame and, if resistance holds, price could fall back to the previous lows around $14.50. A deeper selloff could take place once price breaks below the previous lows.

MACD seems to be indicating that neither buyers nor sellers have the upper hand at the moment. The technical indicator is stalling at the middle ground, although it is on track to head higher. This could mean that a higher correction may take place before the stock resumes its drop.

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Bank of America Shares Forecast

Bear in mind that Bank of America is still facing several lawsuits and investigations which might drive its share prices lower in the near term. However, the bank still remains one of the top financial institutions in America and might continue to grow in value in the longer run.

Of course the near term price action could be very dependent on the outcome of the lawsuits, which could cost the bank billions. If these do not go in their favor, Bank of America shares could be in for a sharper and prolonged decline.

As for its operations, the bank is working on expanding its rewards program to encourage more consumers to take on loans. This follows the FOMC’s recent rate statement, during which the central bank did not to commit to hiking rates in the near term. This was enough for the bank to lower its restrictions on loans and offer more incentives for borrowers. Whether this translates to better loan demand and revenue down the line could be crucial in determining the direction of Bank of America shares.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com

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Jonathan Millet is currently the proud CEO of ForexMinute.com, the brand new financial news portal which is making waves among Forex traders around the globe for the innumerable Forex resources it offers. He also holds the position of Binary Options Consultant at ForexMinute.com. Before ForexMinute.com was around, Jonathan was a successful Forex dealer and chief market analyst at Forexyard. He has also worked as a Forex trader. His other specialties include advising financial companies of how to stay head of the competition.