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JPM stock Chart Tilts to the Down Side

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Highlights:

  1. JPM earnings 13/4/2016
  2. Stock daily chart looks week
  3. Stock weekly chart also in the lower high level. This means JPM stock chart prone to the down side

JPM stock earning date scheduled at 13 April, 2016.Stock expected earnings is $1.45. This is one of the largest financial stock in the wall street with current asset value is $213 billion. However, Stock chart both weekly and daily tells us the different story.

 

JPM Stock chart
JPM Stock chart

 

Stock daily chart shows that stock is in the wedge pattern. Pattern tilts to break to the down side.  Stock was moving to the sideways last few days and holding below the 50 day moving averages is only moving average stock was around last few days.  Today stock regained its 50 day moving average and closed above the 50 day moving average but right below the long term resistance line. Today stock closing is mixed as stock closed very strong but closed below the resistance line.

 

Tomorrow stock could move to either side based on stock earning surprise.  Even if stock earning surprise is positive, stock will feel resistance as stock as face its 100 day and 200 day moving average as its resistance line. Stock 100 day moving average is currently on the $61 and 200 day simple moving average is $63.Stock also has its recent pivot point at $6.  One good point for stock could be $61  open tomorrow, if stock beats the earning.  $61 opening price will change the chart bearish set up and stock will be above the wedge pattern. Then stock will face its next resistce point at $63  which is 200 day moving average.

On the other hand, If stock failed to achieve its consensus EPS $1.45 , stock open at or below $57 ,stock could come back to its February low $53. Another point is, stock is already tilts to down side and wedge seems to breaking to the down side.  Earning loss could make stock free fall for the next down move.

 

Stock chart was not bullish compare to market in recent day’s bullish movement. Because JPM stock relative weakness, stock failure to earning  consensus will make investor and stock traders hopeless, stock may succumbs   to big crash tomorrow.

 

Volume is also indicator for the stock recent performance. Stock chart show JPM recent big volume was only  when stock was down and its recent uptrend volume was low or below moving average.

JPM stock WEEKLY Chart
JPM stock WEEKLY Chart

JPM weekly charts looks   shows that stock made a lower high. This is clearly  indicates  stock has more possibility in down side. Short term day trader consider lower high for good short of the stock. However, even though stock has lot of possibility that stock will move to the down side. If Stock  price comes down to the 50, that would be a good buy opportunity for lot of stock trader and investors. Because this is the stock got support so many time and even August stock crash, JPM  stock chart got support at $50.

 

Bottom line: Even though stock has more points to go dow from technical analysis, Earning could be game changer  of the stock. Big earning surprise  could change the overall chart pattern and investors will start to build portfolio with this stock.