Bank of America - earnings due tomorrow

Bank of America’s share price trading within a bullish channel. The price has pulled back recently towards the lower trendline of the channel but today’s open seems more positive. If the stock can finish today’s session in the green then a new support level of $35.53 may have been already created. This then could be taken as a signal that a continuation back up to the upper half of the channel is underway. Currently, its stock is trading at around $36.58 a share. A break below the support of $35.53 would suggest that selling pressure is higher than anticipated and we may see a sell-off towards the $33-$34 area. However, the earnings from Goldman Sachs have ignited some optimism after JPMorgan was the catalyst for some profit-taking on Friday. Although, it is not guaranteed that the upcoming earnings from remaining banks will have the same reaction on their stocks as was the case for GS. Having said that, the resistance for investors here is $37.59 followed by $37.86. A move above $37.86 would allow investors to target that upper trendline, or respectively, $39 a share. Looking at the technical indicators, the MACD is negative but the RSI is neutral, reading 50.