Archive for the 'JP Morgan Chase (JPM)' Category

JP Morgan (JPM): Try to Break the Neckline for 2nd Time!

June 30th, 2010 by Marubozu

JP Morgan (JPM) bounced back from 50D MA resistance and also 23.6% Fibonacci Retracement Resistance at $40.3 and punched through the neckline at $37.70 yesterday.  Need to monitor whether this selling momentum is str0ng enough to confirm the Double Tops. I believe other traders are watching this level closely and prepared to short sell when this double tops is confirmed.

Tags: . JP Morgan Chase (JPM)   Add a comment

JP Morgan Chase (JPM) – Double Tops!!

June 6th, 2010 by Marubozu

JPM is forming at Double Tops and currently just sitting on the neckline at $37.70. Base on the chart, there is a very high chance for a breakout of this Double Tops chart pattern due to the following observation:

  • JPM is unable to break the 20D MA resistance (shaded in red) and bounces down.
  • 50D MA is crossing down 200D MA.
  • Stock price is hooking on the lower Bollinger Band
  • MACD is going to show Bearish Convergence
  • Parabolic SAR is going to reverse.
  • RSI and Stochastic are reversing and turning down.

Plus fundemantally, all the negative news in Euro zone debt crisis and no clear signs that the crisis can be resolved in near term. Besides the PIIGS, now Hungary is coming into picture! I feel this crisis is even worse than than US financial crisis because Euro zone cannot print money to save those countries.

The breakout target price is $27.70 which is close to the 61.8% Fibonacci Retracement Level. I find no reason not to short JPM by buying a PUT option base on the current analysis. In addition, the implied volatility (IV) is low that make the option not so expensive. Any contrarion out that have a bullish view?

Tags: , . JP Morgan Chase (JPM)   Add a comment

JP Morgan Chase (JPM) – A Good Candidate to Short?

May 6th, 2010 by Marubozu
JPM has just broken 200D MA support and looks like a good short candidate in May. In addition, the cloud is still very dark in the financial sectors on top of the “Sell in May & Go Away” sentiment.
Things to watch:
  • Whether JPM can stay above 200D MA. If not, the next immediate support will be $40.923. If this 61.8% FR level support is broken too, JPM will be very bearish and starts the down trend.
  • If JPM bounces back from 200D and breaks the 50D MA resistance at about $44.00, the bull will be coming back.

I have entered my JPM SEP 43 PUT position and will be watching very closely these two levels.

JP Morgan Chase (JPM) 5 Comments