After Friday’s analysis of Intesa Sanpaolo, we continue our journey through the banking sector. In today’s piece, I have a beautiful setup on a more well-known bank – JP Morgan.

First, look at the chart on JP Morgan. We have a beautiful head and shoulders pattern. The formation started in February however its fate is being decided as we speak, while the price is currently testing the neckline (blue) after drawing the right shoulder.

What will happen with the neckline will decide the future direction of JPM. We’re still waiting for the open bell in the US but yesterday’s session ended with a small victory for buyers. The price managed to defend the neckline with the false bearish breakout pattern (red). Usually, this kind of formation is a great buy signal.

If we combine that with a generally positive sentiment on stocks (another case of buying the dip!) we get a very bullish mixture here. Current sentiment on JPM seems positive and will stay this way as long as the price stays above the neckline.


About Author

During his career, Tomasz has held over 400 webinars, live seminars, and lectures across the globe. He was also an academic lecturer at Poland's Kozminski University. In his previous work, Tomasz initiated live trading programs, where he traded on real accounts, showing his transactions, providing signals and special webinars for the accounts; none of which were ever negative. Tomasz gives preference to a technical approach to trading: mainly price action with very strict money management rules. He believes that the most important thing in trading is your mind, so it is much better to focus on trading psychology than to look for the Holy Grail of trading systems.

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