JP Morgan Is Stuck in a Trading Range

It has been a couple of months since we last examined the charts and indicators for JP Morgan Chase (JPM) . We concluded at the end of March that "At this point in time, it looks like JPM is having a correction in a bull move. Chart support below $85 is OK, but not big. The other side of support is to consider whether there has been much distribution. It does not look like much selling has gone on in the past few weeks, so I maintain a positive view on JPM. A decline to $83 could mean that JPM declines further to $80."

With the benefit of hindsight, we can see in this chart below that JPM eventually declined to $83 and got near $80 and the rising 200-day moving average line earlier this month. We can now see that a downtrend has evolved over the past four months. The slope of the 50-day moving average is negative and the On-Balance-Volume (OBV) line peaked in March. The weakness in the OBV line tells us that sellers of JPM have been more aggressive with more volume be traded on days when JPM has closed lower, which is a sign that traders and investors are more anxious to sell....261 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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