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JP Morgan Chase in Front of a 9% Drop

Interval: Daily


JP Morgan Chase opened this year at $44.70 per share and rallied 13 percent to touch a high at $50.66 per share. Its biggest gain was during January, because from the beginning of February the price started to consolidate. The price pattern draws seems to be a Head and Shoulders. It will be confirmed by a daily close under its base line (46.52).

Even though just under the support, it is found the uptrend line, a fall might just break through both of them. In this case the target given by the pattern is at 42.50. An 8.8 percent drop will get the price of the shares back at the opening price of the year.

A big drop like this might just mean that something worse is going to come for the financial sector, look also at BAC, which finds itself right at the uptrend line. Don’t forget also that JPM has reported its earnings over estimates. The analysts forecasted a $1.16 medium gain per share, but the results were of $1.28 per share.

To make it short…if the price of JPM will drop under the support area and if other signals will continue to be bad, we might see some interesting down moves for the capital markets.

JP Morgan Chase in Front of a 9% Drop by