US Stock Focus Bullish breakout triggered in JP Morgan

Blue avatar for FOREX.com guest contributors
By :  ,  Financial Analyst

Medium-term technical outlook (1-3months) on JP Morgan (JPM)



Key levels (1 to 3 months)

Intermediate support: 112.30

Pivot (key support): 107.00

Resistances: 119.33, 123.10/126.00 & 128.50/129.40

Next support: 94.00

Key Observations

  • The primary uptrend remains in place since Feb 2016 low remains intact as stock price of JPM has managed to stage a rebound right at its lower boundary of the ascending channel support from Jun 2016 that is now acting as a support at 107.00 (see weekly chart).
  • Yesterday, 09 May price action has staged a bullish breakout from its medium-term descending trendline resistance in place since the 27 Feb 2018 all-time high now turns pull-back support at 112.30.
  • The aforementioned bullish breakout in price action has been accompanied by any increase in volume seen in the last 2 days since 07 May 2018.
  • The next significant medium-term resistance stands at 123.10/126.00 which is defined by the upper boundary of the primary ascending channel and 1.00 Fibonacci projection of the on-going 9-year of uptrend from Mar 2009 low to Jul 2015 high projected from the 52.50 primary swing low of 52.50.
  • Therefore as long as the 107.00 key pivotal support holds, JPM is likely to resume its potential bullish impulsive upleg to retest its current all-time high of 119.33 before targeting the next resistance at 123.10/126.00 within its melt-phase of the 9-year of uptrend in place since Mar 2009 low. On the other hand, failure to hold at 107.00 invalidates the melt-up phase to see the start of a significant multi-month correction towards the next support at 94.00 in the first step (23.6% Fibonacci of the multi-year uptrend from Mar 2009 low to the current all-time level of 119.33 printed on 27 Feb 2018 + medium-term range resistance from 01 Mar/08 Aug 2017 high).  

 Charts are from eSignal

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this email, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs. All queries regarding the contents of this material are to be directed to City Index, a trading name of GAIN Capital Singapore Pte Ltd.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.



Related tags: Shares market

Open an account today

Experience award-winning platforms with fast and secure execution.

Web Trader platform

Our sophisticated web-based platform is packed with features.
Economic Calendar