JP Morgan Chase + US30, using one chart to forecast another
Price action of JP Morgan Chase has been converging, failing to make new highs and now testing daily trend line for the 4th time, which is also in line with 200 SMA. A 38% retracement level is below, but major support is $102, where price previously gapped higher in November 2017.
A break lower could be seen as a short opportunity or the price will bounce higher and stay within a pattern for now to test it on the upside.
JP Morgan Chase is, of course, included in US30.
Overlaying the US30 (blue line), we can see incredible similarity between the two charts. JP Morgan Chase, being one of the oldest today and biggest banks in the world, controlling such enormous amounts of capital is very reflective of the US30 chart. In fact, it seems that US30 can give signals to what the JP Morgan price action will do a couple days earlier.
This is a great example of using other charts to help with the forecast of others. Since we were hit by the trade war tensions again and markets started selling today, it sent US30 down over 1%. Seeing US30 break support levels could give early signal to the break of the JP Morgan on the downside. Alternatively, if US30 bounces up, we could see the same on the JP Morgan chart.
Happy Trading!
A break lower could be seen as a short opportunity or the price will bounce higher and stay within a pattern for now to test it on the upside.
JP Morgan Chase is, of course, included in US30.
Overlaying the US30 (blue line), we can see incredible similarity between the two charts. JP Morgan Chase, being one of the oldest today and biggest banks in the world, controlling such enormous amounts of capital is very reflective of the US30 chart. In fact, it seems that US30 can give signals to what the JP Morgan price action will do a couple days earlier.
This is a great example of using other charts to help with the forecast of others. Since we were hit by the trade war tensions again and markets started selling today, it sent US30 down over 1%. Seeing US30 break support levels could give early signal to the break of the JP Morgan on the downside. Alternatively, if US30 bounces up, we could see the same on the JP Morgan chart.
Happy Trading!
Comment:
Comment:
Friday saw the break on the impulsive candle through the trend line and 200 SMA.