There may be a less conspicuous reversal taking shape over at JPMorgan Chase (JPM). While JPM spent most of the first quarter rallying hard alongside the rest of the financial sector, the stock's orderly uptrend broke back in March, and it's been trading lower (however slightly) for the last couple of months. Yesterday's move through the top of JPM's downtrending channel could change that.
If JPMorgan's price action could be described in a word, it's "orderly." Shares rallied off of their November lows in a tightly bound channel, and they've given back some of those gains in a similar channel. You don't exactly have to be an expert technical analyst to see what's going on here. If JPM can confirm its breakout above that upper bound today, we've got a buy signal in this big bank.A momentum uptrend adds some extra confidence to this trade. A short-term uptrend in RSI hints that the breakout has some staying power. If you decide to jump in here, I'd recommend keeping a protective stop just below the 50-day moving average. JPMorgan was also featured recently in "5 Stocks Insiders Are Scooping Up."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV