Stock of the day: JP Morgan

Yesterday was Memorial Day in the US, so the stock market was closed. We’re back today and as always, we have an interesting trading occasion. In this piece – JP Morgan Chase, one of the biggest banks in the world.

It seems that JPM is leaving the no-go zone and is entering the bull market and there are a few signs that support this view. The first one is the inverse Head and Shoulders pattern (green), which very often ends the down trends. The formation is up and running as we already broke the neckline (red).

By the way, the neckline is also the long-term down trendline which has connected lower highs since the beginning of the year. What’s more is the price broke another down trendline (black) and the horizontal resistance on the 125 USD (orange). All that leads us to think that the bad times are gone and JPM is in the early stages of a proper reversal.

The buy signal is on as long as the price stays above the black and orange support. As for the target? Well, the sky is the limit, but let’s say the yellow area above the 140 USD would be a good start. Chances that we’ll get there are quite high.