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Market Outlook

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

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  • 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.