The chartists think that the recent spate of selling at Bank of America might be a bit much. But the oracular line-drawers aren’t certain that BofA is out of the woods.

Dow Jones Newswires’ Tomi Kilgore:

“Bank of America shares are technically oversold, a day before 2Q results are due out, but that doesn’t mean investors should take a chance on buying.

The stock was similarly oversold the last time BofA reported quarterly results (April 15). But the stock erased early opening gains to close down 2.4% at $12.82 that day, and gapped even lower the following session. A subsequent technical bounce peaked a couple weeks later, below the April 15 closing price.

BofA down 2.6% at $9.74, off a two-year low of $9.53 seen in intraday trading. There should be resistance at $9.90, followed by $10.40, while support should be around $9.00-$9.30.”

Other financials are also having a torrid session. Citigroup is off 2.5%, Morgan Stanley is down 2.3%, Wells Fargo is down 1.8%, J.P. Morgan is down 0.7% and Goldman Sachs is off 0.8%.

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