Technical Analysis – JPMorgan Chase at a critical point
May 17, 2023 9:26 am
JPMorgan’s (JPM) recovery since the March 24, 2023 low of 122.98 has halted, with the stock hovering around the 135 area. The March 24 upward sloping trendline is acting as support at this stage with the bulls hoping that the recent downleg proves to be a local trough.
The momentum indicators though are not really supportive of the bulls’ hopes. TheAverage Directional Movement index (ADX) is showing a muted bearish trend and the stochastic oscillator continues to edge lower, towards its oversold territory. It is not inconceivable that these indicators could turn sideways in the next few sessions, prompting a reevaluation of market participants’ strategy.
Should the bulls decide to take the market reins, they would have to clear the wide 133.24-136.02 range populated by the 50- and 100-day simple moving averages (SMAs). Higher, the 50% Fibonacci retracement of the October 25, 2021 – October 12, 2022 downtrend at 137.14 is critical for overall market sentiment. The next resistance point would then be at the January 2, 2020 high of 141.01.
On the other side, the bears would come against the March 24 upward sloping trendline first.If successful in breaking this line, they would set their eyes on the 128.59-128.74 area defined by the 38.2% Fibonacci retracement and 200-day SMA respectively. The June 27, 2021 low at 127.29 seems to be a low hurdle ahead of the 2023 low of 122.98.
To conclude, the bulls are trying to defend the 135 area and push the stock higher, but the overall technical picture is still not on their side. A break below the March 23 trendline could cause a stronger correction.
JPMorgan’s (JPM) recovery since the March 24, 2023 low of 122.98 has halted, with the stock hovering around the 135 area. The March 24 upward sloping trendline is acting as support at this stage with the bulls hoping that the recent downleg proves to be a local trough.
The momentum indicators though are not really supportive of the bulls’ hopes. The Average Directional Movement index (ADX) is showing a muted bearish trend and the stochastic oscillator continues to edge lower, towards its oversold territory. It is not inconceivable that these indicators could turn sideways in the next few sessions, prompting a reevaluation of market participants’ strategy.
Should the bulls decide to take the market reins, they would have to clear the wide 133.24-136.02 range populated by the 50- and 100-day simple moving averages (SMAs). Higher, the 50% Fibonacci retracement of the October 25, 2021 – October 12, 2022 downtrend at 137.14 is critical for overall market sentiment. The next resistance point would then be at the January 2, 2020 high of 141.01.
On the other side, the bears would come against the March 24 upward sloping trendline first. If successful in breaking this line, they would set their eyes on the 128.59-128.74 area defined by the 38.2% Fibonacci retracement and 200-day SMA respectively. The June 27, 2021 low at 127.29 seems to be a low hurdle ahead of the 2023 low of 122.98.
To conclude, the bulls are trying to defend the 135 area and push the stock higher, but the overall technical picture is still not on their side. A break below the March 23 trendline could cause a stronger correction.
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