US Stock Focus Bullish breakout triggered in JP Morgan

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By :  ,  Financial Analyst

Medium-term technical outlook (1-3months) on JP Morgan (JPM)

Key levels (1 to 3 months)

Intermediate support: 112.30

Pivot (key support): 107.00

Resistances: 119.33, 123.10/126.00 & 128.50/129.40

Next support: 94.00

Key Observations

  • The primary uptrend remains in place since Feb 2016 low remains intact as stock price of JPM has managed to stage a rebound right at its lower boundary of the ascending channel support from Jun 2016 that is now acting as a support at 107.00 (see weekly chart).
  • Yesterday, 09 May price action has staged a bullish breakout from its medium-term descending trendline resistance in place since the 27 Feb 2018 all-time high now turns pull-back support at 112.30.
  • The aforementioned bullish breakout in price action has been accompanied by any increase in volume seen in the last 2 days since 07 May 2018.
  • The next significant medium-term resistance stands at 123.10/126.00 which is defined by the upper boundary of the primary ascending channel and 1.00 Fibonacci projection of the on-going 9-year of uptrend from Mar 2009 low to Jul 2015 high projected from the 52.50 primary swing low of 52.50.
  • Therefore as long as the 107.00 key pivotal support holds, JPM is likely to resume its potential bullish impulsive upleg to retest its current all-time high of 119.33 before targeting the next resistance at 123.10/126.00 within its melt-phase of the 9-year of uptrend in place since Mar 2009 low. On the other hand, failure to hold at 107.00 invalidates the melt-up phase to see the start of a significant multi-month correction towards the next support at 94.00 in the first step (23.6% Fibonacci of the multi-year uptrend from Mar 2009 low to the current all-time level of 119.33 printed on 27 Feb 2018 + medium-term range resistance from 01 Mar/08 Aug 2017 high).  

 Charts are from eSignal


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