In his "No-Huddle Offense" segment of "Mad Money" Friday night, Jim Cramer pondered whether the prospect of a recession is off the table now that the trade war has cooled, the Fed is lowering rates and earnings have been fantastic this quarter. Cramer noted that a number of companies have told us that the economy is improving and other companies, like JPMorgan Chase (JPM) , have told us the consumer is strong.
We looked at JPM last week and wrote that traders should, "Continue to hold recently recommended long positions. Traders could raise stops to a close below $119 while maintaining our $150 price target."
Let's check out the charts of JPM again, as prices have climbed nicely and we might be able to raise our stop.
In this daily bar chart of JPM, below, we can see that prices have continued their uptrend. JPM is above the rising 50-day moving average line, and the rising 200-day moving average line as well. The daily On-Balance-Volume (OBV) line has made a new high for the move up and helps to support and confirm the price advance we have seen so far. The trend-following Moving Average Convergence Divergence (MACD) oscillator is in a bullish mode, well above the zero-line. No signs of weakness here.
In this weekly bar chart of JPM, below, we can see the clear upside breakout over $120. Prices are above the rising 40-week moving average line. The OBV line line is OK, and the MACD oscillator has been bullish since April and remains pointed up.
In this updated Point and Figure chart of JPM, below, we can see that $148 is our projected price target based on the "count" of this chart.
Bottom line strategy: JPM has been moving nicely. The bulls are in control. Traders could raise their stops from below $119 to $121. The $150 area is still our price target for now.