JPMorgan’s stock has been quite progressive since the start of November, making higher highs and higher lows within uncharted waters.
The situation, however, is currently looking bleak on the four-hour chart as the creation of a potential double top pattern near the 19-year-old resistance line is increasing the case of a trend reversal. That said, the bearish formation requires a confirmational close below the 147.24 neckline, while the upward-sloping simple moving averages (SMAs) have yet to send any negative trend warnings, keeping some optimism alive in the market.
As regards the market momentum, the RSI and the MACD are painting a cloudier picture for the short term too, as both indicators hold a downward direction below a resistance trendline.
Should the bears breach the 147.24 neckline, the stock could tumble towards the 50-period SMA at 144.37, where the 38.2% Fibonacci of the 127.29 – 154.92 up leg is also place. Lower, a decisive close below 141.00 and beneath the 50% Fibonacci would officially boost the case of a downtrend in the short-term picture.
Alternatively, the price may need to crawl above the resistance line to bring the bulls back into play, opening the way towards the 160.00 psychological mark.
In brief, the largest US bank is facing the risk of a bearish trend reversal in the short term, though only a drop below 147.24 could confirm that.