Bank of America shares inch down on Wednesday, holding reportedly laying off employees in its operations and technology unit

June 15, 2017 7:18 am

Bank of America Corporation (BAC) has reportedly initiated layoffs in its operations and technology division, as the holding continues with its cost-cutting plan aimed at achieving CEO Brian Moynihan’s financial objectives. Many of the job cuts within the unit came from the bank’s Charlotte, N.C., headquarters, according to a spokesperson, who, however, did not provide any specific numbers.

Bank of America shares closed lower for a second consecutive trading session on Wednesday. The stock inched down 0.04% ($0.01) to $23.76, after touching an intraday low at $23.20, or a price level not seen since June 8th ($22.60). In the week ended on June 11th the shares of the financial holding company added 5.43% to their market value compared to a week ago, which has been the best performance since the week ended on December 11th 2016. The stock has pared its advance to 6.02% so far during the current month, following a 3.98% slump in May. The latter has been a third straight month of losses. For the entire past year, Bank of America shares soared 31.31%.

Along with job cuts, the holding company has been shuttering data centers and transferring information to less expensive systems managed by tech companies.

At the same time, at a June 14th conference, Bank of America’s Chief Operating Officer Tom Montag noted that its global banking and markets unit had approximately 1 300 applications, whose maintenance and management cost almost $1.3 billion. According to Dan Frahm, a spokesperson for Bank of America, with the group deciding which platforms to dispose of, more job losses are to be expected.

According to CNN Money, the 29 analysts, offering 12-month forecasts regarding Bank of America’s stock price, have a median target of $26.00, with a high estimate of $32.00 and a low estimate of $20.00. The median estimate is a 9.43% surge compared to the closing price of $23.76 on June 14th.

The same media also reported that 18 out of 32 surveyed investment analysts had rated Bank of America’s stock as “Buy”, while 9 – 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, today’s levels of importance for the Bank of America stock are presented as follows:

R1 – $23.82
R2 – $23.87
R3 (Range Resistance – Sell) – $23.93
R4 (Long Breakout) – $24.10
R5 (Breakout Target 1) – $24.29
R6 (Breakout Target 2) – $24.38

S1 – $23.70
S2 – $23.65
S3 (Range Support – Buy) – $23.59
S4 (Short Breakout) – $23.42
S5 (Breakout Target 1) – $23.23
S6 (Breakout Target 2) – $23.14

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 – $23.14
R1 – $24.20
R2 – $24.74
R3 – $25.80
R4 – $26.87

S1 – $22.60
S2 – $21.54
S3 – $21.00
S4 – $20.47

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