Typically, industries trade as groups. By that, I mean that when one bank is moving higher, they all tend to move higher unless an individual name has a more specific catalyst to cause it to do otherwise. Typically, that means that the stocks in a single industry group tend to have similar technical setups to one another.
That hasn't exactly been the case with big banking name JPMorgan Chase (JPM - Get Report), a firm that holds the title of the largest banking company in the U.S. by assets and market capitalization. Instead of trading like its somewhat more volatile peers, JPM has been doing its own thing for the last few months -- and that has bullish implications for shareholders right now.
Back at the start of 2012, JPM completed a double-bottom pattern, a bullish setup that was first formed when the firm made nearly identical bottoms in early October and late November. The buy signal came into play about a month later, when shares pushed above the breakout level that separated those two bottoms. But since breaking out, shares haven't done much.Instead, they've been consolidating for most of February, trading sideways in a tight range as investors got a chance to think about the big moves JPM had just made. But that changed yesterday with a break outside of the firm's consolidation range. That second breakout sends a buy signal out for JPM in this morning's session. If you decide to buy this bank, I'd recommend keeping a protective stop just on the other side of that breakout level at $37. JPMorgan, one of Maverick Capital's top holdings, shows up on recent lists of 10 Stocks With Double-Digit Gains in 2012 and 7 Bank Stocks Loved by Deutsche Bank. Follow @stockpickr