Bank of America Rises 6.41% on Heavy Volume

Bank of America (NYSE:BAC) traded in a range yesterday that spanned from a low of $13.80 to a high of $14.23. Yesterday, the shares gained 6.41%, which took the trading range above the 3-day high of $13.42 on volume of 311.1 million shares. Often times after large one-day gains, short term traders will seek to take profits and, as such, investors should be cautious.

Shares of Bank of America are currently trading above their 50-day moving average (MA) of $12.06 and should find resistance at their 200-day MA of $14.35. Look for the MA to provide support for a short-term pullback in the shares.

SmarTrend currently has shares of Bank of America in an Uptrend and issued the Uptrend alert on December 09, 2010 at $12.47. The stock has risen 7% since the Uptrend alert was issued.

SmarTrend expects the share price to pullback toward the $13.42 support level. Afterwards, we expect it to move upward with its peers in the SmarTrend Money Center Banks industry.