On 18 February, we reported that Warren Buffett was selling bank stocks, including Bank of America (BAC) and Citigroup (C). This proved to be a sharp decision, as yesterday:

→ Bank of America (BAC) shares fell by 6.34%
→ Citigroup (C) shares fell by 6.25%

As a result, BAC stock hit its lowest level of 2025.

Why Did Bank of America (BAC) and Citigroup (C) Shares Decline?

Investor bearish sentiment may have been driven by concerns over:
→ New US tariffs on imports from Mexico and Canada
→ The risk of renewed inflation growth amid an economic slowdown

This led to a broader decline in financial sector stocks yesterday.

Technical Analysis of Bank of America (BAC)

The chart shows that in 2024, the price was in an upward trend (illustrated by the blue channel), but the $48 level proved too strong for bulls to break. Key observations:

→ In mid-February, a bearish breakout occurred below the channel, and in early March, the same level acted as resistance
→ The $44 level has influenced the trend in the past and could now act as resistance again
→ A drop below the late-December low may indicate a Change of Character (ChoCh) pattern, signalling a potential market shift

BAC Stock Price Forecasts

Analysts remain optimistic. According to TipRanks:

→ 17 out of 19 analysts recommend buying BAC stock
→ The average 12-month price target for BAC is $53

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