From around mid-March, the JP Morgan Chase stock (NYSE: JPM) is struggling to overcome its key resistance area between the 102.09 and 104.37 levels, marked by the highest points of May and April respectively. In the last trading days of May, the share price started declining, however, given that the stock is still balancing above a short-term tentative upside support line taken from the low of May 14th, we will class this decline as a temporary correction before another leg of buying.
JPM may drift a bit further south and test the 94.20 hurdle, marked by the high of May 5th, or the aforementioned upside line, which could provide a hold-up. If new investors see a good opportunity to step in there, the stock may rise back up again towards the 99.36 obstacle, or even to the previously-discussed resistance area, between the 102.09 and 104.37 levels. If the buying is still strong, the next possible target might be near the 110.30 zone, which is the high of March 6th.
Looking at our oscillators on the 4-hour chart, both indicators seem to support the notion of seeing some correction first, before another potential uprise. The RSI, although still above 50, is now pointing lower. The MACD, despite being well above zero, has just moved below its trigger line.
Alternatively, if the previously-discussed upside line surrenders and the share price slides below the 92.38 hurdle, marked by the high of May 20th, that may spook new investors from entering any time soon. JPM might then fall to the 88.59 obstacle, a break of which could clear the path to the 85.30 level, marked by the low of May 15th. Around there, the stock may receive additional support from another short-term tentative upside support line drawn from the low of March 19th.
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