It’s time to expand the stock coverage and look at some additional financial institutions. A banking industry giant, JP Morgan Chase (JPM) will be the focus of this article.

I’ve written a couple other financial articles lately, one was for Bank of America (BAC) and another for Goldman Sachs (GS). The next article after this JP Morgan article will be for Citigroup (C). I’ve also got another article scheduled for some asset managers. When you have rising asset prices, asset managers receive higher fees. That sector could provide a few gems for the next several months as well.

But for now, let’s get back to the banking industry and its leader JP Morgan Chase (JPM). Since I have not looked at a chart for JPM in a while, I’m going to start with a 20 year monthly candlestick chart.

I always like to see where a company’s share price has been. If you don’t study history, you are doomed to repeat it!

JP Morgan Chase (JPM) – 20 Year Chart

This first chart for JP Morgan Chase (JPM) is a 20 year monthly candlestick chart. I was able to overlay 3 different Fibonacci Extension Tools on this chart and look at some upside price targets for its share price.

I would anticipate that JPM’s share price could see some initial resistance around the[s2If !current_user_can(access_s2member_level1)]….

If you want to continue reading this article on JP Morgan Chase (JPM), then you must first login. I review JPM’s upside price targets and downside support areas, including different strategies to scale-into shares for this stock’s hot uptrend.

If you are not a Trendy Stock Charts member, then consider subscribing today! There are several different subscription plans available.[/s2If][s2If current_user_can(access_s2member_level1)] green 100% Target Line and pullback 1 additional time before continuing higher. Then again, it may blow through the 100% Target Line and then pullback to it before finally heading up towards the $110 – $115 area.

If you want to jump in on an uptrend, sometimes you just have to bite the bullet and purchase shares at current prices and save cash for another purchase in case of a pullback. JPM’s share price had 1 pullback towards the $80 area. If it offers another opportunity by pulling back another time towards the $80 area, that opportunity should be used as a scale-in purchase area.

The confluence of Target Lines around the $110 – $115 area leads me to believe that JPM’s share price still has an opportunity for significantly higher prices before seeing a significant pullback of more than 10% during this current uptrend.

JPM – Shorter-Term Price Targets

This next chart for JP Morgan Chase (JPM) is a 2 year daily candlestick chart for JPM where I’ve overlaid a Fibonacci Extension Tool on it to calculate some upside price targets.

I also used a slightly different approach to calculate upside price targets on this chart. I used a Fibonacci Retracement Tool to also calculate an upside price target even though the tool is typically used to calculate pullbacks.

I placed Anchor Point #1 of the Fibonacci Retracement Tool at the beginning of JPM’s most recent uptrend. I then kept sliding Anchor Point #2 higher until the 50% Retracement Line was going through the mid-point of the fastest point in the uptrend. I then placed Anchor Point #2 at it was at the $91.15 mark.

The Fibonacci Retracement Tool estimates the current uptrend will end around the $91 area. The $91 area is probably a stopping point of some sort for the current uptrend. Maybe time for another small consolidation period before the rise to the $102 mark.

Any scale-in purchase below $85 and closer to the $80 area is a great opportunity to jump in on the uptrend. If the market were to keep correcting, another scale-in purchase could be made on any pullback to a supporting trendline below, currently residing right around the $76 area.

But a scale-in opportunity below $85 may not present itself. On January 25, 2017 JPM’s share price left a little gap in the current uptrend. That may be a signal that the share price is headed higher first before any sort of consolidation period. The $91 is the most probable area based on the above charting tools.

JPM – Moving Averages

This is a 1 year daily candlestick chart to look at JPM’s chart activity from a moving average perspective. The most recent pullback was JPM’s first pullback to the 50 Day moving average since the uptrend began. That is a strong uptrend.

A pullback to the 50 Day moving average could be used as a scale-in opportunity. Any breaks below the 50 Day Moving Average would then be a second scale-in opportunity to average down your cost. Otherwise, the second scale-in purchase is made as the share price is going upwards and buying volume is confirming the new uptrend.

JP Morgan Chase (JPM) – Summary

When you combine the upside price targets of $110 – $115 from the 20 year chart and the $91 & $102 price shorter-term price targets from the 2 year daily candlestick chart, I think a road map may be laid out in front of us for its share price over the short and longer-term.

Because of its strong uptrend, JPM’s next consolidation pattern will be more likely than not a Flat wave pattern of some sort. Flat wave patterns tend to develop after strong uptrends.

Remember, a rising interest rate environment is supposed to help the banking industry. Monitoring rate hikes should be part of your responsibilities as an owner of bank stocks. Any change in projected rate hikes and you should be re-analyzing the charts.

As long as interest rate hikes remain on the horizon, look for trading opportunities at the other Target Lines that JPM has above its current share price. Once you get in, let me know if you need help getting out….

Good luck trading…

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