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Berger: Short selling Bank of America after earnings rally
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Serge Berger is looking to sell short Bank of America stock. Better-than-expected earnings have seen Bank of America’s share price rise 11% in less than two weeks and according to Berger it is now hitting an area of technical resistance.
Bank of America reported its biggest quarterly profit in nearly four years on July 15 partly due to a reduction in legal costs. Earnings more than doubled to around USD 5 billion, while revenues rose 1.7% to about 22 billion.
While positive on the stock in the next 3-6 months, Berger believes the it could take a pause from the current rally and pull back. He is looking to sell short on a bearish reversal below USD 17.90 with a stop at 18.20 and target at 17.20.