Technical Analysis – JPMorgan stock looks neutral but still above 50-day SMA

Melina Deltas, XM Investment Research Desk

JPMorgan stock price has been moving between the 50- and 200-day simple moving averages (SMAs) over the last ten trading days and around the 50.0% Fibonacci retracement level of the downleg from 119.18 to 91.07, near 105.13.

From the technical point of view, the stochastic oscillator is heading down after it found resistance in the overbought zone, while the RSI indicator is losing momentum in the positive territory. However, despite the indicators, the red Tenkan-sen line is moving up, suggesting bullish retracement.

The 200-SMA currently at 107.50 could be a trigger point for steeper bullish actions. Further upside pressures could attract greater attention around the 61.8% Fibonacci of 108.45 ahead of the 112.90 barrier, taken from peak on December 2018.

Alternatively, if the stock reverses back to the downside, investors could stop at the 38.2% Fibonacci of 101.81. If the price continues to drop, support could next come somewhere around the 23.6% Fibonacci of 97.71.

In the medium-term picture, the rebound on the 16-month low of 91.07 has failed to turn the outlook from negative to bullish as the stock needs to climb above the 61.8% Fibonacci 108.45 for stronger advances.