Bank of America shares gain for a second session in a row on Wednesday, the group’s share buyback policy to be continued

Buying back its shares will continue to be Bank of Americas preferred practice compared to increasing dividend, according to the groups Chief Executive Officer Brian Moynihan. This way, in his view, the bank may not end up being in a position where it will need to slash dividends in the future.

Bank of America shares closed higher for a second consecutive trading session on Wednesday. It has also been the steepest daily surge since September 12th. The stock went up 2.42% ($0.60) to $25.41, after touching an intraday high at $25.64, or a price level not seen since March 8th ($25.77). In the week ended on September 24th the shares of the financial holding company added 2.63% to their market value compared to a week ago, which marked a second consecutive period of gains. The stock has extended its advance to 6.36% so far during the current month, following a 0.95% slump in August. The latter has been a second consecutive monthly loss and also the largest one since May. For the entire past year, Bank of America shares gained 31.31%. The stock has risen 14.98% so far in 2017.

“Our stocks a good buy and well continue to buy it until the cows come home”, Moynihan said at a conference in London yesterday, cited by Reuters.

Meanwhile, a presentation by Paul Donofrio, Bank of Americas Chief Financial Officer, revealed that $14.2 billion are to be returned to shareholders this year, with share buybacks accounting for a large part of that amount. In comparison, an amount of $6.6 billion was returned to the groups shareholders in 2016.

According to CNN Money, the 29 analysts, offering 12-month forecasts regarding Bank of America’s stock price, have a median target of $27.00, with a high estimate of $32.00 and a low estimate of $20.00. The median estimate is a 6.26% surge compared to the closing price of $25.41 on September 27th.

The same media also reported that 18 out of 31 surveyed investment analysts had rated Bank of America’s stock as “Buy”, while 7 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Bank of America stock are presented as follows:

R1 – $25.45
R2 – $25.49
R3 (Range Resistance – Sell) – $25.53
R4 (Long Breakout) – $25.66
R5 (Breakout Target 1) – $25.80
R6 (Breakout Target 2) – $25.86

S1 – $25.37
S2 – $25.33
S3 (Range Support – Buy) – $25.29
S4 (Short Breakout) – $25.16
S5 (Breakout Target 1) – $25.02
S6 (Breakout Target 2) – $24.96

By using the traditional method of calculation, the weekly levels of importance for Bank of America Corporation (BAC) are presented as follows:

Central Pivot Point – $24.90
R1 – $25.40
R2 – $25.77
R3 – $26.27
R4 – $26.76

S1 – $24.53
S2 – $24.03
S3 – $23.66
S4 – $23.28