JPMorgan Chase Is Likely to Slip Even More After These Earnings

JPMorgan Chase (JPM) hit a new 52-week low in pre-market trading here on Thursday as the global financial giant reported disappointing second-quarter results and issued cautious comments about the road ahead. Let's check on the charts of JPM to see what the next signposts could be. 

In this daily bar chart of JPM, below, we can see that prices topped out back in October/November and have worked lower for months. No sharp and dramatic moves to the downside. No huge price gaps aside from one in January. Nevertheless, prices have declined and trade below the negatively sloped 50-day and 200-day moving averages. Trading volume has been heavy so far this calendar year and the On-Balance-Volume (OBV) line has declined, telling us that sellers of JPM have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator has been in sell territory below the zero line since the middle of January. 

In this weekly Japanese candlestick chart of JPM, below, we see a bearish picture. Prices are in a longer-term decline and trade below the negatively sloped 40-week moving average line. There are no bottom reversal patterns in recent weeks and the weekly OBV line is weak. The MACD oscillator fails to show any lasting improvement. 

In this daily Point and Figure chart of JPM, below, we can see a potential downside price target in the $93 area. The round number of $100 may provide some support.

In this weekly Point and Figure chart of JPM, below, a target of $89 is shown. 

Bottom line strategy: Analysts and the financial media have held JPMorgan Chase CEO Jamie Dimon in high regard over the years, but it looks like he will have his work cut out for him in the weeks and months ahead. Avoid the long side of JPM as further declines look likely.

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