JPM hot run slowing down?
Since fall of 2020 financials sector has been one of the leading drivers behind SPY run. JPM one of top stocks in finance sector has been on a tear as well.
In Nov price finally broke multi year long resistance around $117. Typically violated resistance levels are retested and act as a support. Worth noting 200 weekly MA is getting close to that level.
Will price retrace to test $117 anytime soon? Short answers: it’s definitely possible.
Detailed answer: current trend is showing signs of slowdown and a bit of weakness:
- Week of March 15 price tested another multi year resistance line on high volume, created a doji and closed lower than opened (can be seen on candlestick chart)
- since week of Mar 15 volume has seen significant decline
- PPO has been trending lower, and created negative divergence with price action.
All this eludes to some sort of a pullback. It would have to be almost (30%) decline from current highs to reach $117. It makes sense for this to happen in the foreseeable future, considering other option being price climbing higher and then eventually taking even larger dive down to reach $117. I am watching PPO in case it reverts back to the uptrend, along with higher volumes to signal higher prices.
In Nov price finally broke multi year long resistance around $117. Typically violated resistance levels are retested and act as a support. Worth noting 200 weekly MA is getting close to that level.
Will price retrace to test $117 anytime soon? Short answers: it’s definitely possible.
Detailed answer: current trend is showing signs of slowdown and a bit of weakness:
- Week of March 15 price tested another multi year resistance line on high volume, created a doji and closed lower than opened (can be seen on candlestick chart)
- since week of Mar 15 volume has seen significant decline
- PPO has been trending lower, and created negative divergence with price action.
All this eludes to some sort of a pullback. It would have to be almost (30%) decline from current highs to reach $117. It makes sense for this to happen in the foreseeable future, considering other option being price climbing higher and then eventually taking even larger dive down to reach $117. I am watching PPO in case it reverts back to the uptrend, along with higher volumes to signal higher prices.
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