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Chart of the week – Resurgence of upside momentum for JP Morgan

JPMorgan Chase

Chart of the week – JP Morgan (JPM)

Resurgence of potential upside momentum for JP Morgan 

Medium-term technical analysis 

Time stamped: 9 Jan 2022 at 12:30pm SGT (click to enlarge chart)

Source: CMC Markets

  • US Q4 2021 quarterly earnings results reporting season will kickstart with the Financials/Banks this coming Friday, 14 January. Several majors US Financials/Banks have started to exhibit positive price actions in terms of technical analysis ahead of their respective Q4 earnings results; JPMorgan Chase (JPM) is one of them. JPM will report its earnings on Friday, 14 January before the US market opens; consensus forecast for Q4 earnings per share (EPS) is set at $3.00, a decline of -26.3% year-over-year change in EPS.
  • The recent minor downtrend of JPM from its current all-time high of 172.95 printed on 25 October 2021 to 20 December 2021 low of 151.85 has managed to stall at the median line of its major ascending channel in place since 19 March 2020 low. Last week’s price action has reversed up, reintegrated above its 20 and 50-day moving averages and ended the week with a weekly “Bullish Marubozu” candlestick.
  • These positive elements supported by a bullish daily RSI oscillator reading suggest that the aforementioned minor downtrend of JPM may have ended, and its share price is likely to be in the midst of undergoing a potential medium-term impulsive up move sequence within its major uptrend phase in place since 19 March 2020 low of 77.01.
  • Watch the 157 70 key medium-term pivotal support for a further potential up move to retest the current all-time high of 172.95 before the key medium-term resistance zone of 186.30/192.80 (upper boundary of the major ascending channel & a cluster of Fibonacci expansion levels) within a one to three months’ time frame.
  • On the flipside, a daily close below 157.70 invalidates the bullish scenario for an extension of the downtrend towards the next support at 141.10/138.30.

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