JPMorgan Chase (JPM) is one of the most recognized financial institutions in the world. Even people removed from the securities business could probably tell you who the CEO is (of course Real Money readers know it is Jamie Dimon). The banking giant has been in the news a lot recently, for among things, its rescue/acquisition of First Republic Bank.
In the daily bar chart of JPM, below, I can see a "V" bottom in October followed by a strong advance into early March. The shares pulled back in March and early April to test the rising 200-day moving average line. In mid-April prices gapped above the 50-day moving average line. JPM has been testing the declining 50-day line in recent days.
The On-Balance-Volume (OBV) line shows a rise from the October low and that tells me that buyers of JPM have been more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but correcting.
In the weekly Japanese candlestick chart of JPM, below, I see a strengthening picture. The shares trade above the rising 40-week moving average line. I can see lower shadows on a couple of the recent candles. Lower shadows tell me that traders are rejecting the lows.
The weekly OBV line is above its September low. The MACD oscillator is in a bullish alignment above the zero line.
In this daily Point and Figure chart of JPM, below, I can see that the software is looking for a decline to the $121 area but a trade at $144 would be an upside breakout.
In this weekly Point and Figure chart of JPM, below, I can see a downside price target in the $105 area. A trade at $142 or higher should precipitate further gains.
Bottom-line strategy: Investors have been wringing their hands over the regional banks but JPM is not a regional bank. Let's not lump them together. Traders should look to buy strength in JPM above $142. Risk to $134.
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