JPM double bottomDouble bottom with divergence on MACD, RSI and Stochastic with 61.8% Fibonacci support from the bottom of the corona crash. Compared to the index finances are looking a lot better with JPMorgan Chase & Co. and Citigroup leading the way. Breakout of falling Wedge pattern shows a great opportunity for a Long position.
JPM trade ideas
JPM - Short Term Opportunity with 60% Upside?Given the tendency of banks benefitting from the periods when interest rates are rising, is JP Morgan going to provide investors an impressive 60% upside at these turbulent times?
Let's look at it in more detail.
Fundamental indicators:
Revenue and Profits - demonstrated consistent long-term earnings growth over the past 10 years
Profit margin - impressive 31% in 2021
P/E - 8.7x which is considerably lower than the current S&P500 ratio, i.e. very attractive
Liabilities - no problems with considering this is a banking sector
Technical Analysis (Elliott Waves):
Following the correction of March 2020 shares of JPM have been growing but in a very choppy manner which indicates a potential development of an Ending Diagonal pattern
Waves 1 to 3 have been already completed and we are observing the shaping of corrective wave 4. It has already entered the space of wave 1 bust just about and it's likely to correct a little deeper
Once wave 4 is completed this scenario suggests another zig-zag to the upside before global and very lengthy correction starts, that may last more than 2 years for JPM
What do you think about JP Morgan and its short term prospects?
Also let me know if you would like to see other stocks, indices, Forex or Crypto analysed using Elliott Waves.
Thanks
PS Below is the Educational post about Ending Diagonals
JPMorgan Falls Thru Trap-Door Equivalent to Pre-COVID HighsNot much of an explanation needed here... financials have been struggling, and JPM right along with them. What's notable here is that price has fallen below the pre-COVID highs, which means that all recapture, plus growth obtained prior to COVID, has all be vanished for stockholders of the mega-bank.
Written & Annotated for the CMT Association.
Adam D. Koós, CFP®, CMT, CEPA
President / Sr. Financial Advisor / Portfolio Manager
Libertas Wealth Management Group, Inc.
Bank earnings, winners & losersBank earnings are starting on Wednesday 4/13. Banks have been weak so far this year. In my opinion, Institutional investors are value trapped and hoping to make yield by selling options into earnings IV. Bank earnings guidance can be an important economic indicator for other stocks. Since bank earnings are the first to kick off the earnings season, they will reveal important economic insights that can directly or indirectly affect other stocks. Here's a 16 ticker list of the winners & losers for 2022 YTD and their earnings dates. Also, I have my Signal Blender beta (SigBlendbeta) indicator with RSI slow 40 (blue), VWMA fast 10 (white).
2022 YTD
MTB +6.17%
WFC +1.62%
SCHW -2.77%
USB -6.96%
BANC -7.25%
STT -9.4%
ALLY -10.05%
BAC -10.78%
MS -14.15%
C -15.53%
JPM -15.63%
GS -15.74%
BK -16.70%
BLK -19.67%
SYF -21.13%
FRC - 23.55%
4/13
JPM 7:05am
BLK 6:30am
FRC 7am
4/14
GS 7:30am
WFC 7am
C 8am
MS 7:30am
ALLY 7:25am
USB 6:45am
STT 7:30am
4/18
BAC 6:45am
SCHW 8:45am
BK 6:30am
SYF 6am
4/20
MTB 6:35am
4/21
BANC 6am
Do your own due diligence, your risk is 100% your responsibility. This is for educational and entertainment purposes only. You win some or you learn some. Consider being charitable with some of your profit to help humankind. Good luck and happy trading friends...
*3x lucky 7s of trading*
7pt Trading compass:
Price action, entry/exit
Volume average/direction
Trend, patterns, momentum
Newsworthy current events
Revenue
Earnings
Balance sheet
7 Common mistakes:
+5% portfolio trades, capital risk management
Beware of analyst's motives
Emotions & Opinions
FOMO : bad timing, the market is ruthless, be shrewd
Lack of planning & discipline
Forgetting restraint
Obdurate repetitive errors, no adaptation
7 Important tools:
Trading View app!, Brokerage UI
Accurate indicators & settings
Wide screen monitor/s
Trading log (pencil & graph paper)
Big, organized desk
Reading books, playing chess
Sorted watch-list
Checkout my indicators:
Fibonacci VIP - volume
Fibonacci MA7 - price
pi RSI - trend momentum
TTC - trend channel
AlertiT - notification
tickerTracker - MFI Oscillator
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