A technical analysis of JPMORGAN CHASE & CO.

A possible breakout setup was detected on JPMORGAN CHASE & CO (NYSE:JPM) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:JPM.

What is the technical picture of NYSE:JPM telling us.

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Overall JPM gets a technical rating of 10 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, JPM is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, JPM did better than 87% of all other stocks. We also observe that the gains produced by JPM over the past year are nicely spread over this period.
• JPM is one of the better performing stocks in the Banks industry, it outperforms 87% of 407 stocks in the same industry.
• JPM is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so JPM is lagging the market slightly.
• JPM is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.

Check the latest full technical report of JPM for a complete technical analysis.

How does the Setup look for NYSE:JPM

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:JPM has a 8 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, JPM also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 236.31, a Stop Loss order could be placed below this zone.

How can NYSE:JPM be traded?

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

More breakout setups can be found in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.