It looks like the JP Morgan Chase stock (NYSE: JPM) is becoming attractive on the market again. After a strong sell off back in December, the stock of the largest US bank might be onto something good here again. JPM is involved in various projects with other major US companies. One of these projects is with Amazon and Berkshire Hathaway on creating a joint venture - “Haven” - to lower healthcare costs for their employees. But apart from that, JP Morgan Chase continues to invest into technology, which improves their customer experience and continues to retain clients.
From the technical side, JPM has now shifted above its medium-term downside resistance line taken from the highest point of September of 2018. Another positive aspect is that, on Friday, the stock closed above the 200-day EMA and one of its key resistance levels, at 106.05. In our view, the stock has potential to travel further north, at least in the near term.
Even though we consider everything what was mentioned above, for a better confirmation of the upside, we would like to see a break above the 107.25 resistance, marked by the peak of February. This way JPM would confirm a forthcoming higher high and may have a good chance of pushing further up, as more investors could start seeing value in the stock. The next potential target for the share price could be the 109.62 zone, which is the low of November 30th, a break of which could lead the stock towards the 111.40 hurdle, marked by the highs of November 28th and 30th. If the buying momentum doesn’t ease off, the next stop for JPM might be near the highs of November 8th and December 3rd, at 112.90.
Or oscillators are also showing rising upside momentum. The RSI is above 50 and points higher. The MACD is still above zero and has just shifted slightly above its trigger line. Both support the above-discussed idea.
Alternatively, a drop back below the aforementioned downside resistance line could make investors worry again. But the move that could throw them out of the game for a while might be a break below the 103.70 obstacle, or even better, the 102.00 hurdle, marked by the low of March 8th. This is when we will aim for the 100.05 area, which is the low of February 8th, a break of which could open the door for a further drop to the 98.10 support zone. This is where JPM got held from falling further on January 15th.
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