Shares of JPMorgan Chase & Co (NYSE:) are setting up well for a run into new all-time-high territory. The stock is testing the April highs and is heading for its best close of the year. JPM began to pierce a key overhead trendline that links the March/April highs last week. Shares are gaining momentum now.
JPM is far from overbought (daily MACD) despite remaining in a narrow range just shy of the March peak. The 50-day moving average is supporting this week’s low. We believe the consolidation that began in late February set the stage for a fresh rally leg. On the downside, a close back below $152.00 would violate this week’s low, sending a clear warning sign that more sideways action is ahead.
Note: We are long JPM in some managed accounts.
You can read gary S. Morrow’s original post here.
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