Stock Of The Day: Support For Bank of America?

Bank of America Corporation (NYSE:BAC) is our Stock of the Day.

The firm’s shares are trading lower on Wednesday, despite its beating earnings estimates. Some analysts and traders are watching to see if this is a buying opportunity.

The chart of Bank of America illustrates an important market dynamic that suggests that it may be.

In bull markets, there is a large amount of seller’s remorse among traders and investors. This is because they sell items and later regret it when the price rises.

Sometimes, when this happens, unhappy traders and investors decide to buy back their shares. But they also decide to do so only if they can buy them at the same price they were sold for.

So if the price drops back to the selling price, they place buy orders.

This dynamic can even convert resistance levels into support levels. This is shown in the Bank of America chart below.

Back in May 2025 the stock hit resistance at this level. A selloff followed.

But in June, this resistance broke. When this happened, remorseful sellers decided to buy their shares back at their selling price.

When Bank of America dropped back to around $44.50 in August 2025, they placed buy orders. There were so many that it turned what had been a resistance level into a support level.

As shown in the chart above, the same pattern occurred around the $48.50 level. It was resistance in July, then support in October.

Now, traders and investors are watching to see if Bank of America is a buying opportunity. Levels around $53.90 were resistance in November. This resistance broke in December.

But the earnings release has resulted in the shares falling back to this former resistance. At least for now, they have found support.

If the support continues to hold, it could end up being a buying opportunity like it was in August and October.

Image: Shutterstock