Bank of America surges in premarket on upbeat earnings

Bank of America (BAC.US) stock jumped over 3.0% in premarket as profit and revenue beat analysts’ estimates thanks to better-than-expected bond trading and higher interest rates. Investors digested a drop in Q3 profit as bank set aside funds to cover potential soured loans. Company earned  81 cents topping market estimates of  77 cents a share. Revenue of $24.61 billion also beat Refinitiv analysts’ projections of $23.57 billion.

Bank of America (BAC.US) stock shares plunged 28% from the beginning of the year, still down around 36.0% from its 52 week high of $50.11 set on 10 February 2022. Stock price rose sharply in premarket and is currently testing major resistance at $32.65, which is marked with upper limit of the descending channel and previous price reactions. Should break higher occur, upward move may accelerate towards August high at $36.85. On the other hand, if the upward momentum will lose steam, another support at $30.20 may be at risk. This level coincides with 38.2% Fibonacci retracement of the downward wave launched in March 2020. Source: xStation5