JP MORGAN eyes a potential correction to $210 at least.JP Morgan Chase (JPM) has been trading within a Channel Up since the 2009 bottom of the Housing Crisis. Throughout its course, it has posted 5 strong Bullish Legs, with the current one being the strongest (+221% so far). The result of its strength is the price being exactly at the top (Higher Highs trend-line) of the Channel.
With the 1M RSI extremely overbought and on its highest level since February 2018, the pattern may have reached its upper limit and could be calling for a technical correction. This correction should be in the form of a long-term Bear Cycle (Bearish Leg). Out of the 4 previous Bearish Legs, 3 pulled-back to their 0.618 Fibonacci retracement levels, while 1 to its 0.382 (Fib). That was the only one that found Support on the 1W MA50 (blue trend-line), while the most recent two bottomed on the 1M MA100 (green trend-line).
Note also that 3 of those corrections dropped by around the same %, with the 'weakest' being -41.90% (also the most recent in 2022).
As a result, if JPM has indeed priced its new Top (Channel Up Higher High) currently, a minimum correction to the 0.382 Fib would target $210, while a -41.90% (also minimum) drop would test $190. The latter would also potentially made an ideal contact with the 1M MA100. A 0.618 Fib correction would be at $158, but also below the Channel Up, unless executed very violently, which makes it a less realistic scenario.
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