Chart analysis: Warren Buffett, Bank of America and Lloyds Bank
18th October 2021 07:26
by Alistair Strang from Trends and Targets
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Independent analyst Alistair Strang studies the charts for further clues as to direction of this pair of high-profile banks.
Bank of America Corp (NYSE:BAC)Â already looks capable of some useful movement. Around a year ago, Warren Buffett bought BoA shares priced at somewhere around the $24 mark, almost doubling his $2 billion investment value while the rest of the world coughs politely in the background.
With US earnings season announcements currently proving positive, we shall be fascinated if the share price wanders above $47.
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Presently, the share is trading around $46.4, so this isn’t one of these vaguely distant potentials. Above the trigger calculates with the potential of further growth toward an initial $49.1 with secondary, if bettered, at $51.8 sometime in the future.
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We cannot calculate above this level presently as it implies a new high for the price. However, we suspect some hesitation should $51.8 make itself known. The share price needs to diminish below $38 to justify panic.
Source: Trends and Targets. Past performance is not a guide to future performance
Lloyds Banking Group (LSE:LLOY) yet again did something useful following our previous update when the shares were trading at around 45.4p.
Presently trading around 49.1p, the share price met our recovery scenario and moved, pretty precisely, to our target levels. Now, the situation exists where we can advance another set of circumstances, this time presenting some rather more useful target levels.
Above just 49.3p currently looks perfectly capable of triggering a nod in the direction of 51.9p.
Our secondary, if such a target level exceeded, calculates at 54.7p, pretty close to the pre-pandemic high.
Should the share price follow the footsteps of BoA above, some reversal is probable at this level, hopefully short-lived. It would be especially nice if Lloyds followed a similar upward trajectory, but we’re not inclined to hold our breath!
Source: Trends and Targets. Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.Â
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