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This bank stock is about to rally: Trader

Bank of America shares are down nearly 20 percent this year, putting it close to a bear market while it underperforms the rest of the financial sector, which is down about 10 percent. But one trader thinks BofA could be setting up for a rally.

"The bank stock has been making higher lows with a bottom at $12.94," said Fast Money trader Steve Grasso on Behind the Trade; he's looking to step in at a close over $14.

Bank of America beat earnings estimates this month for the past quarter but worried investors with warnings about weak oil prices impact on its business.

The stock could face more selling pressure in the $15 range, Grasso said. He recommends waiting for the stock to enter the "sell zone," between $15.16 and $15.68, more than a 10 percent jump from current levels.