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Category: JPMorgan Chase (JPM) and Technical Analysis
Date: 15 July 2020 Stock Price of JPMorgan Chase: $98.21 The stock price of JPMorgan Chase (JPM) has increased by 42.6% over the last 5 years. A decent return provided to stockholders. The question is what is next for JPMorgan Chase stock? Where is it heading over the short and longer term?
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While over the 5 year period the stock of JPMorgan Chase (JPM) increased by a very strong 492.4%. No stockholder will ever say no to these types of returns. But the question is where to from here for the stock of JPMorgan Chase (JPM). Below we do some technical analysis on JPMorgan Chase stock price in order to determine the most likely route JPM stock is to take in coming weeks and months."
More About JPMorgan Chase
JPMorgan Chase (NYSE: JPM) is one of the oldest financial institutions in the United States. With a history dating back over 200 years, here's where we stand today:
We are a leading global financial services firm with assets of $2.6 trillion.
We have a presence in over 100 markets.
We have over 250,000 employees.
We serve millions of consumers, small businesses and many of the world's most prominent corporate, institutional and government clients.
We are a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management.
Our stock is a component of the Dow Jones Industrial Average.
We are a leading global financial services firm with assets of $2.6 trillion.
We have a presence in over 100 markets.
We have over 250,000 employees.
We serve millions of consumers, small businesses and many of the world's most prominent corporate, institutional and government clients.
We are a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management.
Our stock is a component of the Dow Jones Industrial Average.
JPMorgan Chase (JPM) stock price history over the last 5 years
The image below shows the stock price history of JPMorgan Chase (JPM) over the last 5 years. And its been decent time for JPMorgan Chase stockholders with the stock of JPMorgan Chase increasing by 42.6% over the last 5 years
While over the 5 year period the stock of JPMorgan Chase (JPM) increased by a very strong 492.4%. No stockholder will ever say no to these types of returns. But the question is where to from here for the stock of JPMorgan Chase (JPM). Below we do some technical analysis on JPMorgan Chase stock price in order to determine the most likely route JPM stock is to take in coming weeks and months.
Technical Analysis of JPMorgan Chase (JPM) stock price
While there are many different technical analysis indicators we tend to follow the principle of keeping things simple. The KIS principle. So we will take a look at the shorter term moving averages and the longer term moving averages as well as the Relative Strength Index (RSI). So let's focus at the longer term moving averages first.
Below we do some technical analysis on JPMorgan Chase (JPM) stock price in order to determine the most likely route JPM stock is to take in coming weeks and months. The image below shows the stock price of JPMorgan Chase (JPM) as well as its 50 day and 200 day moving average as well as the RSI.
Below we do some technical analysis on JPMorgan Chase (JPM) stock price in order to determine the most likely route JPM stock is to take in coming weeks and months. The image below shows the stock price of JPMorgan Chase (JPM) as well as its 50 day and 200 day moving average as well as the RSI.
From the image above, one can see that the RSI is just above the midpoint of 50, but below the 70 mark, which is an indicator of a stock being overbought (basically it is due for a correction). So the RSI is not providing a definitive sign of where the stock is heading, but since it touched 70 relatively recently and has pulled back from there we believe the stock of JPMorgan is in a correction phase right now which could signal further stock price weakness in coming weeks.
Turning our attention to the moving averages one can see the 50 day moving average is well below the 200 day moving average (which is a negative sign for a company's stock price). If the 50 day moving average crosses below the 200 day moving average it is a negative sign and indicates potential stock declines, if the 50 day crosses above the 200 day moving average its a positive sign for a company's stock price.
From the image above one can see the 50 day moving average is well below the 200 day moving average, which is a negative sign. But since the RSI has been coming down recently and its pointing to a potential further decline in the stock of JP Morgan the question is how far will it fall, if it falls? The 50 day moving average and 200 day moving average also shows medium and long term support levels for a stock price. So should STZ stock decline more it is expected to find medium and longer term support at the following prices:
As we mentioned 50 day and 200 day moving averages are longer term technical indicators, so let's take a look at shorter term indicators. The image below shows the stock price of JPMorgan Chase as well as its 10 day and 30 day moving average as well as the RSI.
Turning our attention to the moving averages one can see the 50 day moving average is well below the 200 day moving average (which is a negative sign for a company's stock price). If the 50 day moving average crosses below the 200 day moving average it is a negative sign and indicates potential stock declines, if the 50 day crosses above the 200 day moving average its a positive sign for a company's stock price.
From the image above one can see the 50 day moving average is well below the 200 day moving average, which is a negative sign. But since the RSI has been coming down recently and its pointing to a potential further decline in the stock of JP Morgan the question is how far will it fall, if it falls? The 50 day moving average and 200 day moving average also shows medium and long term support levels for a stock price. So should STZ stock decline more it is expected to find medium and longer term support at the following prices:
- 50 day moving average: $96.01
- 200 day moving average : $114.02
As we mentioned 50 day and 200 day moving averages are longer term technical indicators, so let's take a look at shorter term indicators. The image below shows the stock price of JPMorgan Chase as well as its 10 day and 30 day moving average as well as the RSI.
In a similar vein to the approach to the longer term analysis, if the 10 day moving averages crosses over above the 30 day moving average it is a positive sign for a stock and if the 10 day moving average crosses below the 30 day moving average its a negative sign for a stock price. At this point the 10 day moving average is trading at just above the 30 day moving average (a positive sign). But since the RSI is indicating potential further declines the question is over the shorter term period where are the support levels for JPMorgan Chase's stock price?
So should JPMorgan Chase stock be in for a correction as the RSI indicates it has been in a correction phase for a while, the first support levels will be the shorter term levels shown above. If the stock falls below these support levels the next support levels will be the 50 day and 200 day moving average levels.
Thus if the stock of Constellation Brands (STZ) decides today to start its decline we will see the following levels as support levels for Constellation Brands
Based on JPM's current stock price it is close to its 30 day moving average. Should the stock price of JPM stay above the 30 day moving average in coming days it will be a positive sign and the stock could easily run up to levels around $114 which is where its 200 day moving average is at right now. However with the group having reported results yesterday and their provision for credit losses surging 420% compared to a year ago, we cannot see the stock price momentum being positive after that news, so we predict its more likely to turn negative and the first support level will be $94.40. If it breaks below that a lot more pain could be in store for JPMorgan Chase stockholders.
- 10 day moving average: $94.40
- 30 day moving average: $98.81
So should JPMorgan Chase stock be in for a correction as the RSI indicates it has been in a correction phase for a while, the first support levels will be the shorter term levels shown above. If the stock falls below these support levels the next support levels will be the 50 day and 200 day moving average levels.
Thus if the stock of Constellation Brands (STZ) decides today to start its decline we will see the following levels as support levels for Constellation Brands
- 10 day moving average: $94.40
- 30 day moving average: $98.81
- 50 day moving average: $96.01
- 200 day moving average : $114.02
Based on JPM's current stock price it is close to its 30 day moving average. Should the stock price of JPM stay above the 30 day moving average in coming days it will be a positive sign and the stock could easily run up to levels around $114 which is where its 200 day moving average is at right now. However with the group having reported results yesterday and their provision for credit losses surging 420% compared to a year ago, we cannot see the stock price momentum being positive after that news, so we predict its more likely to turn negative and the first support level will be $94.40. If it breaks below that a lot more pain could be in store for JPMorgan Chase stockholders.