JPM JP Morgan Chase Weekly Chart Earnings Release Tomorrow

JPM JP Morgan Chase weekly chart showing the negative divergence spank down that occurred in February (blue lines). The pesky RSI, however, carries a lot of clout (red line), and it was not agreeable to that spank down since it maintained a long and strong profile for price. In other words, the RSI wants to see another matching or higher high in price and price is currently coming back up to satisfy the RSI's request.

The projection by the green lines show negative divergence now appearing across all indicators, but to be official negative divergence, price must match or exceed the February high. The thinking would be that tomorrow mornings earnings release will provide that impetus. Note the two year lower trend line and how the March intraweek low bounced off this lower rail. This is a chart that is topping and rolling over. The forecsat is for earnings to be a happy beat, and price to float up to satisfy the green circles.

This ticker is much more attractive to think in terms of shorting at the 48-ish area, give or take, as the green bubbles are satisfied, rather than chasing the happy earnings talk in the morning with a long. JPM longs should enjoy tomorrow, perhaps a day or two more, if that, because surely by next week and beyond, they will be crying in their beer. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.

For further color on JPM, enter the ticker into the search box and bring up the previous daily chart posted a couple weeks ago.  The following updated comments are in reference to that chart:

Here we are the eve before the JPM earnings release. Note how the 20 MA crossed back above the 50 MA--bullish. Today's price is testing the lower trend line so a bounce would be prudent. Also note how price came up to fill the gaps as previously projected. The H&S pattern is somewhat blown out now but the targets shown by the green lines should still be referenced moving forward. Overall the chart is agreeable to rolling over but considering the earnings release in the morning, and the items mentioned, a move towards 48 would be prudent and this would signify the final topping move for the stock. Thus, the earnings should be in line with estimates, even on the happy side, but caution is warranted, this is a much better stock to choose your short entry in the 48-ish area moving forward rather than jumping on the long side because of any earning news hype you hear as you sip your morning coffee.