The charts and indicators of JPMorgan Chase & Co (JPM) have improved the past few weeks. Are prices now ready to test or even break above the February/March highs? Good question so let's take a closer look at the latest charts and indicators.
(For more on JPM, see Jim Cramer's Trade Wars and Tariffs May Soon Be Baked Into Pricing.)
In this daily bar chart of JPM, below, we can see that prices made a topping pattern in January/February/March. The slope of the 50-day moving average line has been negative until recently when it turned flat.
From an early July low JPM has rallied above the rising 200-day line and the now flat 50-day line.
The daily On-Balance-Volume (OBV) line has been weak until late June when it turned neutral.
In the lower panel is the 12-day price momentum picture which shows higher lows from early April telling us that downside momentum has been improving as prices have declined. This bullish divergence between price and momentum could be foreshadowing the recent price improvement.
In this weekly bar chart of JPM, below, we see a mixed picture for JPM, technically speaking. Prices have rallied above the still rising 40-week moving average line, but prices are still in a downtrend. A close back below the 40-week line could easily happen.
The weekly OBV line peaked in January and has been weak until this month. The OBV line is a long way from a new high.
The weekly Moving Average Convergence Divergence (MACD) oscillator has begun to narrow towards a possible bullish crossover and outright go long signal.
In this Point and Figure chart of JPM, below, we can see an upside price target of $131. We can also see some chart resistance overhead.
Bottom line: JPM has improved this month. Traders could look to buy a dip just below $110 risking below $105.