This is by far the worst performing stock on the DOW and S&P. 1,000+ DOW points later, BofA (BAC) has tanked over 30% during the same period. It's definitely a sign of a very unhealthy stock that is very sick. As a long term investor, should you continue to hold and pray it will eventually clean up this foreclosure mess and start to grow again?
Or should you cut your loss and re-invest what's left in your account on something else? Are you losing sleep over this stock? Is it making you sick to your stomach? Is it causing heartburns? Are you losing your hair? Is it causing a strain on your relationship with your spouse? It's time to sit back and reflect on whether it's time to dump this dog stock and move on to greener pastures.
If the pain is too much, you may consider moving on, otherwise, buy more painkillers and sedate yourself because it's probably not going to get better for BofA anytime soon.
Let's look at it's p&f chart and see where it's heading. As shown below, the stock's current pattern is a descending triple bottom, a very bearish sign, more toward the sell side. It means there's more supply than demand for $BAC shares at the moment. Buyers are not stepping up to support it at the moment. I'm amazed some analysts are pretending to rate this stock as a hold while they're probably telling their clients to sell. $BAC could drop to a low of $9.50. Supports are roughly around $11, $10...resistance are above $14 and so forth. So based on this supply and demand analysis, you decide if you want to rough it out for the next few quarters.
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