July 12, 2011 | In: Financial

Will BAC Trade Below $10 Today?

One of the stocks that I watch most (but I’ve stopped trading since last year) is BAC. Although I have categorized this stock as risky before, I think it is one of the most interesting stocks out there. The pattern is now very clear, the long term downtrend is bearish, and the stock is testing new lows nearly every month.

BAC dropped to a two year low yesterday to $10.35, and is currently trading in the pre-market at $10.18.

Figure 1: BAC down to $10.18 (a new low) or 1.64% in the pre-market (courtesy of Google Finance).

If today proves to be as bad as yesterday for this stock, then expect the stock to reach (yet another) new low and drop below the $10 level. I think there’s an enormous support at that level though, but once tested for the first time, it means that in the very near future, the stock will drop below the $10 level and will stay there for a long, long time. If I haven’t made the decision to no longer be tempted by BAC, I would buy shares at the $10 level, and sell at the $10.50 (because I’m sure the stock will jump at least 5% when it reaches $10 because of all the automatic buy orders).

If BAC remains stuck in this bearish hell, then I wouldn’t be surprised if Bank of America will do a reverse split, similar to the one that C did back in May (by the way, C is down 13% after the reverse split).

2 Responses to Will BAC Trade Below $10 Today?


BAC Falls Below $10 « Fadi El-Eter

July 18th, 2011 at 1:39 pm

[…] know I have said this would happen a week ago, but hey, it eventually happened, and not long after I predicted it. I […]


Is BAC a Good Buy? « Fadi El-Eter

July 29th, 2011 at 9:14 am

[…] any case, the stock is currently trading below the $10 level, which means that the stock is, by all standards, cheap. But the question is, is it a good […]

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