BANK OF AMERICA STOCK FALLS ON RATING DOWNGRADE
Bank of America’s stock is currently trading at 27.93-lower by 0.68 % as compared to the previous closing price. In the pre-market trading session, the stock was trading lower by 0.50%. The stock has continued falling after the opening bell.
Investment bank KBW downgraded the company’s stock to market perform from outperform citing earnings pressure from expected further interest rate cuts by the U.S. central bank. The investment bank also lowered its price target to $36 per share from $29 per share.
KBW believes that no end in sight for the U.S.-China trade dispute further weighing on Bank of America’s share as well as long-term interest rates. The investment bank believes that the bank will continue on its current growth strategy and remain a prudent underwriter.
On the technical front, the RSI is currently at 51.71% and suggests that the market can move in the downward direction. The current price is above the MA5. The current price is above the middle line of the Bollinger Bands but is heading downwards.
TRADE SUGGESTION- STOP SELL AT 27.82 TAKE PROFIT AT 27.52 STOP LOSS AT 27.97