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Bank of America Corp.

(BAC)
The million-dollar-question is whether BAC has emerged out of the woods? Its impressive 5.42% gains
overnight have pushed the stock back near the $13.00 area. Just earlier this month the stock was
hammered heavily and reached $10.91. Afterwards though, BAC staged its first leg up and currently it is
in progress for aiming a return towards $13.00-$14.00 trading area.

The jump on Thursday smashed BAC’s way past the EMA-50 curve at $12.08, and set it up near the next
EMA resistance (100-day) at $12.79. Once past the second barrier, EMA-200 awaits at $13.77, ready to
block first attempt upwards. MACD indicator also showed a picking up of bullish pressure, and this has
provided some good support for the stock to proceed even higher.

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Statistics

20.00%

15.00%

10.00%

5.00%

0.00%
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5.00% 09 10 10 10 10 10 10 10 10 10 10 10 10

-10.00%

-15.00%

0.00%
YTD 12-Mos
-5.00%

-10.00%

-15.00%

-20.00%

-25.00%

Definitely not a showing off an amazing performance so far this year, BAC instead heavily hammered
repeatedly since December last year. Having only 5 up months since, the stock only recently resurrected
from the abyss and so far leads the Dow 30 league table with 15.53% returns this December. Overall,
YTD result is still underwater with a 16% decline in value.

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The strategy

SUPPORTS LAST RESISTANCES


12/9/2010

9.15 10.91 11.50 11.88 12.10 12.65 13.02 14.33 15.38 16.44 17.75

Although not a dream performer, BAC is probably on the verge of climbing back to the mid-$14.00 area,
or even higher. Do keep in mind however, that the recent rally cannot be assumed as a reversal of
fortune yet. So far, it should be considered as a corrective bounce. Whether this will develop into a
trend reversal remains to be seen. It is crucial that BAC maintains its position above $11.50. Below this
level, the health of the recovery will be questioned. For now, the stock is seen heading at $13.02 first,
$14.33 next and $15.38 afterwards.

Disclaimer: This report is provided for information purposes only. It is not an offer to sell or to buy any
securities. This report has been prepared based on sources believed to be reliable, but there is no
assurance or guarantee regarding its completeness & and accuracy. The author accepts no responsibility
or liability arising from any use of the report.

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