December 8, 2010 | In: Financial

Bank of America (BAC) Holding the $12 Level

Bank of America (BAC) closed today at the $12 level. This is, in my opinion, a very important psychological turn in the trend of the stock, which, until this very moment, is still bearish. However, as I stated earlier today, closing at this level can make the stock run and easily break the $13 level in a few days, that is, provided we don’t have anymore bad news hitting us from Europe in the next week.

Closing above $12 means that investors think that BAC has been beaten well enough now and needs to go out of its “depressed” state. This stock has been undervalued for so long and the subject of many stories and gossip. Not to mention, of course, that a lot of investors out there, including me, have sad stories about BAC, as it became extremely disappointing as of August.

What would be really interesting is if BAC closes above $13 this Friday, if this happens, then next week expect BAC to shoot for the moon. I own some shares of BAC that I bought at $12.40 a few weeks ago.

Next week is the official start of the end of year bullish season; historically most non-bear stocks go up at this point.

Whatever happens, it would be very exciting to watch BAC in the next week or so.

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