How Is JPMorgan Chase Lining Up as Bank Earnings Approach?

We're checking the charts ahead of the bank's upcoming earnings report.

Many market watchers keep close tabs on shares of JPMorgan Chase (JPM) for various reasons. Some consider CEO Jamie Dimon an astute steward of the firm and they like to follow a leader. Others watch JPM because of its size in the industry. And still others are waiting for Dimon's next interview.

And, of course, banks are among the first to report during earnings season, with JPM scheduled for January 13.

Our last review of JPM was November 2, so let's join the crowd and check out the charts again.

In the daily bar chart of JPM, below, I can see that the share price continued up to the end of November before turning softer. The shares tested the rising 50-day moving average line in December and we could see further testing in the days ahead. The 200-day moving average line is below the market and now bottoming.

The trading volume continues on the slower side while the On-Balance-Volume (OBV) line shows some firming from October and a higher low in December. The Moving Average Convergence Divergence (MACD) oscillator is back to the zero line.

 

In the weekly Japanese candlestick chart of JPM, below, I can see a few upper shadows on the candles in the past two months. Some traders are rejecting the highs so the path of least resistance may be down in the weeks ahead. JPM is trading above the bottoming 40-week moving average line.

 

The weekly OBV line shows an up and down and up pattern. Further weakness in the OBV line will not help the bulls. The MACD oscillator has been narrowing so the strength of the uptrend is fading.

 

 

In this daily Point and Figure chart of JPM, below, I see that the software is projecting the $119 area as a potential downside price objective.

 

 

In this weekly Point and Figure chart of JPM, below, I see a bullish target of $201. A trade at $126 could weaken the picture.

 

 

Bottom-line strategy: I would take a cautious stance on JPM for the next few weeks.

 

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