JP Morgan Ahead of Earnings: Deposit or Withdrawal?
Let's check in on the bank before quarterly results Friday.
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JPMorgan Chase JPM is scheduled to report their latest quarterly results this Friday morning. Is the bank a buy or a sell at this point based on the charts and indicators?
Let's check.
In the daily bar chart of JPM, below, I can see that the share have made a significant advance from the low in late October. Prices trade above the rising 50-day moving average line and above the rising 200-day moving average line.
Trading volume has remained active the past 12 months but does not show us a pattern of increases. The On-Balance-Volume (OBV) line has moved in a positive direction since October.
The Moving Average Convergence Divergence (MACD) oscillator is pointed upwards but is likely to generate a bearish divergence when compared to the price action.
In the weekly Japanese candlestick chart of JPM, below, I see a mixed picture. Prices are trading in a positive direction and above the rising 40-week moving average line. There is a recent doji after a shooting star pattern on the chart below — this gives us pause.
The weekly OBV line is still in a bullish rise. The MACD oscillator has been correcting lower the past three months.
In this daily Point and Figure chart of JPM, below, I can see an upside price target in the $240 area but a trade at $189 or lower could turn this chart bearish.
In this weekly Point and Figure chart of JPM, below, I can see a similar picture as the daily chart above.
Bottom-line strategy: JPM shares have worked higher the past few months but this could be part or even half of a topping process. Too early to know for sure. Meanwhile traders can stay long but give thought to a potential exit strategy.
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