JP Morgan (JPM)
JPMorgan Chase & Co (NYSE:JPM) made a high in February last year and then pulled back to a support zone in July. That brought the price under the 200 day SMA as well. It bounced from there back to the prior high in August and held there into September. From there it fell back to the support zone again into October.
Another bounce stalled at a lower high, near the 200 day SMA and it consolidated. At the start of December, it back to support and then swiftly through it to the Christmas Eve low. Since then it has been moving higher and the price is now back at the support zone, as resistance.
The RSI is on the edge of a move into the bullish zone with the MACD slightly positive and rising. The Bollinger Bands® have pushed higher as well. There is resistance at 105 and then 107 followed by 111.50 and 113. Support lower comes at 103 and 102 then 99 and 96. Short interest is low under 1%. The stock started trading ex-dividend January 3rd and the company is expected to report earnings next on April 12th.
A look at the weekly options chain sees a big open interest above at the 105 and 106 strikes which could pull the price higher. The February options chain has the highest open interest at the 105 Call and 100 Put. The March chain has heavy open interest at the 110 Call with big numbers at 105 and 115 as well. Finally, the April chain, covering the nest earnings report, is just starting to build open interest and has piles at the 100 Put and 105 Call.
JP Morgan Trade Ideas
- Buy the stock on a move over 105 with a stop at 102.50.
- Buy the stock on a move over 105 and add a February 103/100 Put Spread (95 cents) as protection, selling the March 110 Call (60 cents) to help fund it.
- Buy the April 105/February 106 Call Diagonal ($2.54) and sell the February 99 Put (52 cents) to lower the cost.
- Buy the April 95/105/110 Call Spread Risk Reversal for 68 cents.
Elsewhere
Gold to pause in its uptrend while Crude Oil pauses in its move higher. The U.S. Dollar Index is back in broad consolidation while U.S. Treasuries pause in their uptrend. The Shanghai Composite is building the case for a possible reversal higher while the Emerging Markets (NYSE:EEM) building a reversal itself.
Volatility looks to remain muted keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts remain strong in the short timeframe and just short of full bullish on the longer timeframe. Use this information as you prepare for the coming week and trade them well.
Disclaimer:
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.