Chart of the week – JP Morgan (JPM) due for a potential bullish breakout

Chart of the week – JP Morgan (JPM)

JP Morgan (JPM) due for a potential bullish breakout

Medium-term technical analysis

Source: CMC Markets

Time stamped: 10 Apr 2021 at 2:00 pm SGT

The share price of JP Morgan (JPM) has been trading in a sideways configuration for six weeks since 25 February. As indicated by the Bollinger Band Width, a measurement of realised volatility, the current reading of it stands at 0.05 which is the lowest level since 22 December 2020.
Given such relative low reading in volatility, JPM is likely due for an imminent potential expansion/breakout from its current sideways configuration of its price action.
In addition, the daily RSI continues to hover above a significant ascending support at the 50 level which suggests that potential medium-term upside momentum of price action has started to build-up.
If the 141.10 key medium-term pivotal support holds, JPM may see a potential bullish breakout to kick-start another leg of potential impulsive up move to target the next resistances at 166.60/168.90 and 178.70 (the upper boundary of an ascending channel in place since 29 October 2020 low & a cluster of Fibonacci expansion levels).
On the other hand, a daily close below 141.10 invalidates the bullish scenario to open up scope for a corrective decline towards the major support zone of 118.90/110.50.

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