Wednesday, October 9, 2013

JPMorgan Chase & Co (NYSE: JPM)

JPMorgan Chase & Co., a financial holding company, provides various financial services worldwide. Its Consumer and Community Banking segment provides deposits, investment products and services, lending, and cash management and payment solutions to consumers and small businesses; mortgage origination and servicing; and residential mortgages and home equity loans. The company's Corporate and Investment Bank segment offers various investment banking products and services, including advising on corporate strategy and structure, capital-raising in equity and debt markets, and loan origination and syndication; transaction services, such as cash management and liquidity solutions, and trade finance products; and market-making services in cash securities and derivative instruments, as well as offers risk management solutions, prime brokerage, and research. The company's Asset Management segment offers investment and wealth management services, including equities, fixed income, alternatives, and money market funds; multi-asset investment management services; retirement products and services; and brokerage and banking services comprising trust and estate, loans, mortgages, and deposits.
The JPM stock has formed a head and shoulders (H&S) pattern. Please take a look at the 1-year chart of JPM (JPMorgan Chase & Co) below with my added notations:
1-year chart of JPM (JPMorgan Chase & Co) Over the last (5) months JPM has created a key level of support at $50. That $50 support is also the current “neckline” for JPM's H&S pattern. Above the neckline you will notice the H&S pattern itself. Remember, patterns such as an H&S need to confirm to have the meaning that they imply. Confirmation of the H&S would occur if the stock were to break below its $50 support. If JPM does break that level, the stock should move lower from there.

The Tale of the Tape: JPM seems to have formed a head & shoulders pattern. Although a trader could go long at $50 expecting a bounce, the stock's pattern implies an eventual breakdown. If that happens, a short trade should be entered on a break of the $50 level.
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