• 10 hours Gold Is Beating Buffett’s Berkshire Hathaway
  • 13 hours What’s Behind The Silver Sell-Off?
  • 16 hours The Retail Apocalypse Is Accelerating
  • 19 hours The Top Tech Stocks Of The Year
  • 1 day America’s Workforce Elderly Workforce To Double By 2028
  • 2 days Toyota Tests Solar-Powered Prius
  • 2 days Why The Gold Rally Flatlined
  • 3 days The Uranium Sector Can’t Catch A Break
  • 3 days Upcoming Fed Meeting Has Investors On Edge
  • 4 days Global Gold Sector Outlines Responsible Mining Principles
  • 4 days China’s Giant Vampire Fund Loses $120B
  • 5 days McDonalds To Roll Out Robot Drive-Thru Clerks
  • 5 days Savvy Investors Are Betting Big On This Little Data Company
  • 5 days How The Government Is Wasting Tax Money This Year
  • 6 days Supply Concerns Halt Expansion On Tianqi Lithium Plant
  • 6 days The World’s Biggest IPO Is Almost Here
  • 6 days The Relatively Of Money And Happiness
  • 7 days Wall Street Unfazed By Recession Fears
  • 7 days SoftBank Urges WeWork To Pause IPO Plans
  • 7 days Anti-Aging Market To Hit $55 Billion
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

TheWaveTrading

TheWaveTrading

TheWaveTrading

My goal is to establish the most likely path that the price of a particular asset will undertake and profit through ETF instruments both on…

Contact Author

  1. Home
  2. Markets
  3. Other

JPM: En Fuego

  • JPM is the strongest bank among its peers
  • So far it does not have a sequence of lower lows
  • Today a massive reversal pattern should open the door to at least a Fibonacci retracement of the decline from the June 2015 lower high

Monthly time frame:

  • Negative sign: Breakout failure (Above the 2000 ATH)
  • Positive sign: It has not established a lower low (Below the October 2015 low) hence the long-term trend is not down
  • EW wise I am clueless.

JPM Monthly Chart
Larger Image

Weekly time frame:

  • We have an impressive reversal candlestick, which is suggesting more follow through to the upside in the days ahead
  • The first hurdle is located at a weekly gap at 57.76 then we have R1 = 58.53; R2=59.70 and R3= 60.72
  • If R2 is reclaimed then odds should favor at least the 0.5 retracement of the decline from the November lower high, which coincides with R3 = 60.72; The 0.618 retracement is at 62.72

JPM Weekly Chart
Larger Image

Daily time frame:

  • We have a massive Island Reversal (With a huge gap). This reversal pattern usually occurs at major bottoms.
  • Next Tuesday JPM has to prove to be so strong by not losing the 10 dma = 56.80
  • The immediate resistance is located at the gap = 57.76
  • By closing the gap JPM would breach the upper trend line of the channel that has been formed from the June 2015 high.
  • If JPM does not fail at the R2=59.66, probably the next target should be located at the declining 50 dma which today stands at 61.35

JPM Daily Chart
Larger Image

  • If we zoom in at the price action from the end of January we can see that JPM has most likely formed a Triangle. Yesterday's down leg has been a shallow thrust that should have completed an EW pattern.
  • Hence the Triangle in addition to the Island Reversal are compelling bullish reasons.

JPM Daily Zoom Chart
Larger Image

  • Daily oscillators are aligned with higher prices ahead: The RSI has a positive divergence in addition to breaching the trend line resistance from the November high and the MACD has a new bullish signal cross

JPM Daily Momentum Chart
Larger Image

  • Lastly it is quite impressive the outperformance of JPM versus KBE (Bank ETF) since October 2015. It is also impressive that from January in spite of the broad base market weakness the JPM relative strength has accelerated.

JPM versus BKR Daily Chart

 

Back to homepage

Leave a comment

Leave a comment