Is JPMorgan Chase & Co. Stock Prepared For A higher High? | Technical Analysis
Looking at the technical picture of the JPMorgan Chase & Co. stock (NYSE: JPM), in the beginning of November, the share price jumped strongly to the upside. The stock ended up adding at least 15% to its value. Now we can see that the price is struggling with overcoming the 118.89 barrier, which currently is the highest point of November. At the same time, JPM is still balancing above a few short-term upside lines, a steeper one taken from the low of October 30th and a flatter one drawn from the low of November 9th. Although there is a good indication for the stock to move higher, we would still prefer to wait for a break above that 118.89 barrier first. Hence our somewhat-bullish approach for now.
If, eventually, we do see JPM popping above the 118.89 barrier, this will confirm a forthcoming higher high, possibly opening the door to some higher areas. The stock might then travel to the 122.79 zone, which is the highest point of March. The share price could stall there for a bit, or even retrace back down slightly. If JPM is able to stay above the previously talked about 118.89 area, new buyers may step in and lift the stock again. If this time the share price is able to overcome the 122.79 obstacle, that would confirm another higher high and clear the way towards the 125.62 level, marked by the high of February 27th.
The RSI is currently pointing slightly to the upside and remains above 50, which still show increasing upside speed of the price. The MACD is a bit more modest, as it is sitting above zero, but below its trigger line. Overall, the two indicators show positive price momentum for the stock.
Alternatively, if the share price suddenly drops heavily to the downside, breaks the two aforementioned upside lines and moves below the 113.57 hurdle, marked by the low of November 19th, that could force new buyers to refrain from entering the field for a while. Such a move might increase the stock’s chances of drifting further south, initially targeting the low of November 9th, at 110.35. A break of that support zone may lead JPM towards its next possible support area between the 105.20 and 106.21 levels, marked by the highest points of August and September respectively.
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