What Аre the Тechnical Signals Telling Us about This Bank Stock?

While the financial sector as a whole has been underperforming the S&P 500 since the April 2025 low, a number of major banks have shown fairly positive technical signals in recent weeks. Today, we’ll take a look at the technical picture for Bank of America (BAC), with the latest breakout possibly signaling the start of a new impulse move higher.

On the daily chart, we can observe two major consolidation patterns that formed after the April low. First, during July and August, a classic bull flag pattern developed, characterized by a short-term countertrend of lower highs and lower lows. The breakout in mid-August pushed BAC shares above the 50-day moving average and trendline resistance, confirming the start of a new upward trend.

After reaching a new peak in September around $53, Bank of America entered a sideways consolidation phase, with support provided by the 50-day moving average and the swing low from September. In mid-October, the stock gapped higher to retest the previous resistance level, before breaking out this week to a new 52-week high.

What gives us confidence that this latest breakout could lead to further gains?
The weekly chart shows that the current upswing is simply the latest chapter in a multi-year uptrend that began from the October 2023 low.

It’s worth noting that after the selloff in March and April 2025, BAC shares managed to recover to their previous high and then continue higher. With a solid uptrend in place, supported by strong momentum and no clear signs of reversal, we can assume that the chart remains “innocent until proven guilty” — in other words, the trend remains valid until genuine signs of weakness appear.

An increase in trading volume could definitely help confirm the latest price breakout.
During the July–August correction, the Chaikin Money Flow (CMF) indicator turned negative. This bearish configuration confirmed a distribution phase, as higher volume on down days suggested that institutional investors were unwinding their positions.

However, after the mid-August breakout, the CMF turned positive again, signaling a new accumulation phase for Bank of America. Since then, the Chaikin Money Flow has been trending higher, and if the indicator can hold above the crucial zero level, there is a strong chance we could see new, higher highs, supported by renewed bullish sentiment toward this American banking giant.