Chart of the Week: JPM
We have a big bank – JP Morgan – JPM is the symbol.
As you can see on this daily chart, I’ve indicated some levels here that the stock has broken out from. I’ve also indicated here the strong move on the parabolic SAR, which is called the stop and reverse system. It’s in bullish formation right here with dots below the price of the stock – that’s good support.
We also see a crossover on the MACD, which happened about the beginning of June, and it confirmed it a couple of days later. It’s quietly, slowly creeping up here.
We also see on the go-no-go indicators, which is the candlestick color scheme that we have here on the top chart, that we are in light blue. Light blue indicates go bull! The teal is a more tentative bull, but we’re now in go-bull formation for JP Morgan.
Also on the bottom chart here is the Trader’s Dynamic Index, and we can see that this indicator has crossed over bullishly and is starting to move from the bottom left to the upper right. So that is another bullish formation.
As recent as yesterday, we added some JP Morgan into the service. You can see we added JP Morgan Sep 140 calls at $6.40. That is a name we like here. We went all the way out to September because we wanted to give ourselves more time to let this work.
There is some resistance on the weekly chart around 152, possibly stretching out to 160. We think that, given about three months’ time before these options expire, if we can get a nice move up into that area, we can get good double or a double and a half on these JPM calls.
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