The Dimon Bottom Hype Is OverCNBC has loved to refer the recent pullback in the SPX as the "Dimon Bottom" because CEO Jamie Dimon purchased roughly $26 million worth of JPM shares. However, it's not looking for those wanting to hold to believe in the recovery dream.
Whether investors want to believe it or not, the U.S. economic cycle is rolling over; and, considering the very high correlation to the SPX, J.P. Morgan shares will unlikely be saved.
Since 2014, I been warning of potential headwinds from energy exposure in U.S. banks. It may not cripple the sixth-largest bank in the world, but death by 1,000 cuts won't be any better for shareholders.
On Tuesday, JPM reported a 20 percent decline in trading revenues, as well as a $500 million increase in provisions (up 60 percent) due to their energy exposure. Fee revenues were down 25 percent.
Technically, the weekly chart is showing more downside is to come. Traders are watching a 20-weekly bearish convergence with the 50- and 72-weekly EMA. Price action is, also, currently below the 200-weekly EMA.
The inability to show support above this level and challenge $59.60 could poise further stress on shares.
Near-term, we'll see price action test the trend/price demand between $52.30-$53.50. A close below $52.30 would open up $48.3 and trend lower to $43.74.
If looking at Fib. retracements, a close underneath Aug 24, 2015 Black Monday low, 1.618 Fib. extension would stand at $37.54. This would be my target for Q2-17.
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JPM
Possible Head & Shoulders breakoutLooks like our favorite investment bank may be have even more of a down swing in store. This head and shoulders pattern looks pretty well defined. The current candle however is sitting on a support level around 170 but if that is breached then 150-152 may be in store. as the next stop.
Consolidation inside the PRZ - Butterfly completion near X BAC Bearish Bat pattern is still valid as the price consolidates inside the PRZ, below two broken uptrend lines.
As the markets await Yellen and the Fed, Financials are stuck and that clearly being reflected in BAC's chart.
If the price will attempt to rally and test the X zone (18.5$) it will complete a small Butterfly pattern that will add chances that we will see bearish reversal in BAC and a move towards 16.5$-17$
R/R shown in the chart (for two scenarios)
Tomer, The MarketZone
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Recently price has bounced up from the 10-year uptrend border, marked by 1st standard deviation from 10-year mean (at 57)
Currently price is trading around its 5-year uptrend border, marked by upper 1st st deviation from 5-year mean (at 62)
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JP Morgan Chase & Co Weekly (22/2014) Chart Technical AnalysisThe JP Morgan (JPM) weekly chart shows the following signs:
JPM from the price of $31.77 has completed a long phase until the $60 an now it makes some consolidations between $53 & $60. As you can see on the diagram it corrected until it reached the top of KUMO from where it reacted upwards. A critical day is 17.05.2014 that the company will anounce the earnings until 6/2014 and that will define the next trend
Technicaly, RSI is neutral and MACD signal line is trying to turn upwards. So my suggestion is wait and see except if the price get out of the consolidation channel.