Blue-chip bank stock JPMorgan Chase (JPM) is encumbered a 5% deficit in December and pacing for a fifth-straight day-to-day loss, as it continues to cool down from its Nov. 25 all-time high of $254.31. Shares are partially lower this afternoon, last seen trading at $237.61, and it may be time to purchase the dip. If past is precedent, then this latest pullback has JPM trading near a traditionally bullish trendline.
The trendline in concern is the shares' 50-day moving typical and per Schaeffer's Senior Quantitative Analyst Rocky White, JPMorgan Chase stock faced this trendline 5 times in the last 3 years. For the function of this research study, White specifies that as the equity trading above the moving average for 80% of the time over the previous 2 months and closing north of the trendline in 8 of the last 10 sessions, before getting within striking range of the moving average.
The stock balanced a 4.3% return one month later on after 60% of stated pullbacks. A relocation of comparable magnitude would put the equity near $248, back within striking range of record highs.
Contributing to the bullish case, the security's 14-day relative strength index (RSI) of 20.9 is deep in “oversold” area, which is usually a sign of a short-term bounce. Plus, JPM's Schaeffer's Volatility Scorecard (SVS) stands at a high 81 out of 100, showing the stock went beyond alternative traders' volatility expectations in the previous 12 month– an advantage for exceptional purchasers.
Daily Chart of JPM considering that January 2024 with 50-Day Moving Average
Chart courtesy LSEG Workspace
Follow me on Twitter. Have a look at my site.
