Bank Of America's Stock Rallies, But To Remain Well Below Key Technical Level

By Tomi KilgoreMarketsMarketWatch Pulse

Shares of Bank of America Corp. surged 1.3% in active premarket trade Tuesday, after the banker beat first-quarter profit and sales expectations, but it should remain well below a key chart level to keep the technical bias negative. Volume was 6.9 million shares about 10 minutes before the open, enough to make the stock the most actively traded in the premarket. The stock was changing hands at $23.11, while the closely-watched 50-day moving average extended to about $23.99. The 50-day MA is seen by many chart watchers as a dividing line between short-term uptrends and downtrends. The stock hasn't closed above the 50-day MA since it closed below it on March 21, for the first time in six months. The 200-day moving average, seen as a long-term trend tracker, extended to $19.45 on Tuesday. The stock has run up 30% since the election through Monday, while the SPDR Financial Select Sector ETF has climbed 17% and the S&P 500 has gained 9.8%.

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