Top Story

JP Morgan rejected at key range resistance ahead of earnings

JP Moragan Chase (JPM)



click to enlarge charts

Key elements

  • The recent 10% up move of JPM share price from its 31 May 2019 low has tested the medium-term “triangle range” resistance in place since 20 Sep 2018 where it has tested and failed to break above its current all-time high level of 119.33 printed on 27 Feb 2018.
  • JPM has declined by -1.77%; that underperformed the Financials sector (-0.57%) which was the 2nd worst performer among the S&P sectors in yesterday, 15 Jul U.S. session.
  • The price action of JPM has formed a daily “Bearish Engulfing” pattern at end of yesterday’s U.S. session right at the aforementioned “triangle range” resistance.
  • Near-term support rests at 110.80 which is defined by a minor “ascending range” support in place since 31 May 2019 low.
  • Key medium-term resistance stands at 116.10 as per defined a Fibonacci projection cluster and close to the medium-term “triangle range” resistance.
  • Relative strength analysis from the ratios of JPM against its industry sector (S&P Financials XLF) and the U.S. benchmark stock index (S&P 500) have continued to exhibit medium-term weakness/underperformance.

Key Levels (1 to 3 weeks)

Pivot (key resistance): 116.10

Supports: 110.80 & 105.80

Next resistance: 119.33

Conclusion

If the 116.10 pivotal resistance is not surpassed and a break with a daily close below 110.80 is likely to see a further potential push down to target the next support at 105.80.

On the other hand, a clearance with a daily close above 116.10 sees a squeeze up to retest the all-time high of 119.33.

Charts are from eSignal 


Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

The markets are moving. Stop missing out.

OPEN AN ACCOUNT