Bank of America shares fall for a sixth straight session on Friday, bank places restrictions on penny stocks trading

October 1, 2018 7:41 am

According to an announcement by Bank of America Corporation (BAC) on Friday, as part of a change in policy, it is to restrict trading operations in penny stocks as it aims to safeguard customers from high-risk assets.

Bank of America shares closed lower for a sixth consecutive trading session in New York on Friday. The stock went down 1.60% ($0.48) to $29.46, after touching an intraday low at $29.42, or a price level not seen since July 16th ($28.73).

Shares of Bank of America Corporation have dipped 0.20% so far in 2018 compared with an 8.99% gain for the underlying index, S&P 500 (SPX).

In 2017, Bank of America’s stock surged 33.57%, thus, it outperformed the S&P 500, which registered a 19.42% return.

Low-priced securities (at, or even below $5 per share), which are traded over-the-counter and have scarce or no financial disclosure information available, are considered as penny stocks.

According to a report by CNBC, Bank of America had started to restrict its customers’ dealings in low-priced stocks in late July, when it prohibited purchases.

A month and a half later, the Wall Street bank informed customers that it was placing restrictions on sales of risky securities, after which it made amendments to its policy so that its clients could have time to exit their positions.

“To ensure we are complying with Securities and Exchange Commission (SEC) regulations and protecting the interests of our clients, we have made changes to our policy regarding low-priced security,” Jerry Dubrowski, a spokesperson for Bank of America, was quoted as saying by Reuters.

According to CNN Money, the 28 analysts, offering 12-month forecasts regarding Bank of America’s stock price, have a median target of $34.70, with a high estimate of $39.00 and a low estimate of $28.00. The median estimate represents a 17.79% upside compared to the closing price of $29.46 on September 28th.

The same media also reported that 15 out of 29 surveyed investment analysts had rated Bank of America’s stock as “Buy”, while 9 – as “Hold”.

Daily and Weekly Pivot Levels

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

R1 – $29.50
R2 – $29.54
R3 (Range Resistance – Sell) – $29.58
R4 (Long Breakout) – $29.70
R5 (Breakout Target 1) – $29.83
R6 (Breakout Target 2) – $29.89

S1 – $29.42
S2 – $29.38
S3 (Range Support – Buy) – $29.34
S4 (Short Breakout) – $29.22
S5 (Breakout Target 1) – $29.09
S6 (Breakout Target 2) – $29.03

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 – $30.03
R1 – $30.63
R2 – $31.81
R3 – $32.41
R4 – $33.02

S1 – $28.85
S2 – $28.25
S3 – $27.07
S4 – $25.90

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