Long-Term Trend Review for BAC, C & JPM
I've recently updated the members-only "Website Orientation" webpage to include information on how to subscribe to your favorite forum posts. I've also updated the orientation webpage for a few other items. If you haven't viewed the webpage recently, be certain to a few moments and check it out! (Please note - this is a members-only link)
BAC, C & JPM
All of the below charts are 5 year monthly candlestick charts to review the longer-term trend for each.
As I mentioned in several of my previous updates such as the long-term trend update for AAPL, DAL & SIRI and then another update for FB, GOOGL & TWTR last week, be certain to subscribe to your favorite forum topic. This was you can be certain of any important notifications that I may issue for a particular stock.
This long-term trend review is for companies in the banking sector. Companies covered in this article are Bank of America, Citigroup and JP Morgan (BAC, C & JPM). Let's see what the banking sector has to offer!
Bank of America (BAC)
Out of BAC, C & JPM, I will review BAC first.
This first chart for Bank of America (BAC) is a 20 year monthly chart, not the usual 5 year monthly chart I have posted for most companies. I wanted to look extremely long-term with this chart.
Based on the 50% Retracement Line from the Fibonacci Retracement Tool and the combination of other Fibonacci Extension Tool Target Lines, the $35 price level looks to be the most probable price target for this uptrend before a possible longer consolidation period. That would be around the 61.8% Retracement Line from the black Fibonacci Retracement Tool.
Longer-term, BAC's share price has performed a 38.2% Retracement of its previous downtrend. That is the minimum trade I anticipate for a rebound trade. The 38.2% Retracement Line may provide for some resistance. Use any pullbacks around or slightly below the $20 price level to purchase additional shares if the opportunity arises.
Matter of fact, back up the Brinks armored truck at that point if the market gives you that opportunity. I am not sure it will happen, but there is a chance for the $20 price level being reached before the $35 level. And if that does happen, it will offer a great opportunity.
Consider establishing a small core position to begin with and then add a few trading shares as the trade continues to develop.
In my previous full length article for Citigroup (C), I made a comment that it looked like C's share price could reach the $96 price level. That was definitely a long-term comment at the time.That comment was back in this article "1/31/2017 – Citigroup (C) Stock Chart Review".
An initial scale-in purchase below $55 and closer to $50 is an excellent opportunity to get long on this company.
C's share price was $57.11 when I made that comment.C's share price only got as low as $55.23, that is why scale-in purchases and sales are always recommended.
The $61 resistance level that C's share price broke through in June 2017 should now act as a support area. Especially since C's share price broke through the resistance on increasing buying volume.
Its MACD Histogram is once again showing signs of increasing buying momentum as well. Increasing buying momentum leads to higher share prices. One aggressive strategy is to use any pullbacks during increasing buying momentum to purchase additional shares. These shares can either be traded or held until the buying momentum begins to decrease.
This combination of bullish factors indicates that any pullback towards the $61 price level should be used to make additional purchases for the portfolio. I would probably make an initial purchase around the $65 price level.
Once the $73.16 price level is reached, the short-term activity should be monitored to see if a probable trading opportunity exists.
C's share price still has quite a ways to reach its $96 price level I talked about back in January 2017. However the $72 price area is probably best described as "objects in the mirror are closer than they appear".
JP Morgan Chase (JPM)
The last company in this stock market update on the banking sector is for JP Morgan Chase (JPM). This is a 10 year monthly candlestick chart instead of a 5 year chart.
The $80 - $85 price level looks like the best area for an entry for the next leg of the uptrend. The buying momentum is showing signs of slowing down, but there is still buying momentum. This will lead to higher prices.
JPM's upside price target is around the $114 price level. Any purchases made in the $80 -$85 price level should pay off handsomely a few months after their purchase.
The resistance area from the Dark Cloud Cover candlestick pattern that developed in March 2017 may provide the resistance needed for the pullback back to the $80 - $85 price level. The $80 - $85 price level is what I would consider the preferred zone to purchase shares for the next leg up on this trade.
If JPM's share price has closed above the Dark Cloud Cover resistance area by the end of July 2017, then continue holding your shares until the $114ish price level.
BAC, C & JPM
So do the charts of BAC, C & JPM have anything in common? They are all in uptrends with support areas below where additional purchases can be made to add shares to your portfolio.
All of the charts also provide for approximate 10% - 20% upside moves before their charts need to be re-analyzed. If anything starts going awry or not developing along with expectations, drop a request in the Idea Chamber. Ask for an update at any time!
Good luck trading!