JPM is in a rising wedge which if broken is very bearish. Blue dotted lines represent ex-trend lines and I put them here so you can see how the trajectory of rising is slower and slower (weaker and weaker) and eventually will reverse completely and will start falling. At this stage, JPM is ready for topping or is already done and is prepared for the major drop from here, especially if and when breaks out of that bearish pattern. Also the fact it manages to test the support line but can't bounce to the resistance line is more bearish than bullish.
Volume in the last 10 days does not confirm price action as it is lower than 20 days average volume.
However, the price is above all major MA which is bullish.
RSI had several months of bearish negative divergences while in the last few weeks, those divergences are even more robust which is very bearish.
MACD has also strong bearish divergences.
Overall: JPM is hardly holding on to this level where price movements indicate there is no momentum in price anymore. Moreover, it indicates there is a relative weakness in price compared with RSI and MACD as oscillators are unable to move up with price anymore, meaning a lack of momentum. If the price is not able to retest the upper trend line it will be even more bearish divergences in forming.
Breaking below 8 and 20 days MA and below the lower trend line would trigger a sell signal with a target around BigRed 200 days MA. Also, a sell signal will occur when touching the upper trend line.
Volume in the last 10 days does not confirm price action as it is lower than 20 days average volume.
However, the price is above all major MA which is bullish.
RSI had several months of bearish negative divergences while in the last few weeks, those divergences are even more robust which is very bearish.
MACD has also strong bearish divergences.
Overall: JPM is hardly holding on to this level where price movements indicate there is no momentum in price anymore. Moreover, it indicates there is a relative weakness in price compared with RSI and MACD as oscillators are unable to move up with price anymore, meaning a lack of momentum. If the price is not able to retest the upper trend line it will be even more bearish divergences in forming.
Breaking below 8 and 20 days MA and below the lower trend line would trigger a sell signal with a target around BigRed 200 days MA. Also, a sell signal will occur when touching the upper trend line.
Consistency is the key of success....
