Shares of JP Morgan Chase 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 trend line 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 50D 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.
We are long JPM in some managed accounts.