Bank of America (BAC) is breaking out of a 10-week consolidation Tuesday. The stock is up just shy of 3% and is beginning to put some distance on a very heavy resistance zone near $23.50. As Bank of America builds on Tuesday’s momentum, a major support zone is being left behind. With a base this solid underneath, the stock is set up well for more upside.
Bank of America first reached the $23.50 area back in early December as the initial phase of the post-election rally began to run out of steam. After surging more than 35% from its Nov. 8 low, the stock was in need of a healthy rest.
