Technical Analysis – JPMorgan’s stock prints new all-time high ahead of earnings

Christina Parthenidou, XM Investment Research Desk

JPMorgan’s stock had an incredible rally the past two weeks, unlocking a fresh record of 141.60 ahead of its earnings release, which is due on Friday, before closing lower.

Some weakness or some stabilization would not be very surprising after such a marvelous progress. Besides, with the RSI and the Stochastics having surpassed former resistance bars in the overbought territory, there is a growing potential for a downside reversal.

However, neither of these indicators have convincingly shifted southwards, nor the MACD has eased its positive momentum yet, suggesting that some bullish fuel might still be in store. The bullish market structure and the upward-sloping exponential moving averages (EMAs) are also backing this narrative.

If the bulls hold the reins, the next target could be the 145.00 psychological mark. Above that, the long-term resistance line, which joins all the highs from 2012, may induce another selling wave around 153.00.

On the downside, the 138.00 level could immediately stop any decline towards the 134.00 barrier. If the latter proves fragile, the 20-day EMA may attempt to add strong footing around 129.00 as it did in December.

In brief, JPMorgan’s stock is looking bullish in the short-term picture, but has yet to confirm overbought conditions, keeping the focus on the upside for now. Another upturn could post a fresh all-time high around 145.00.