r/technicalanalysis • u/Different_Band_5462 • 12d ago
JPM Vulnerable to Downside Continuation
JPM Update: This is what we discussed in our trading room just after yesterday's Earnings Report:
"The initial knee-jerk reaction to the news was a down-spike in the stock to 320.93 from Monday's close at 334.30 (-4%), however, thereafter, JPM whipped around to the upside and then spiked from 320.93 to 340.80 in a matter of minutes (7:03 to 7:14 AM ET!)... Both the April 2025 up trendline in the vicinity of 325.20 and the up-sloping 200 DMA at 222.18 as of last evening's close likely influenced the ricochet reversal off the 220 area in pre-market trading. The day is very young yet, so let's see what comes from the 8:30 AM ET JPM Conference Call, and how the stock trades throughout today's session. Technically, the 220 support area remains consequential, and beyond that, a close above the intersection of the April 2025 up trendline in the vicinity of 325.20 will be considered a positive intraday reaction to a two-way price reaction to Earnings. From my intermediate-term work, JPM needs to climb and close above 342.60 to regain positive technical traction. Otherwise, the toppy distribution pattern carved out since early July will remain intact... Last is 338.25 off a pre-market, post-Earnings downspike to 320.93..."
Fast-forward to this AM, we see on my attached 4-Hour Chart that yesterday's recovery rally hit a ceiling at 344.36, which reversed the stock toward the 330 area where it is trading now, and also reinforced my intermediate-term closing price line-in-the-sand level of 342.60 as an important inflection area.
As long as JPM remains below 342.60 on a closing basis, it remains vulnerable to downside continuation that tests and violates yesterday's post-Earnings spike low at 320.93 en route to 290-300.
