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JPMorgan Chase & Co. (NYSE: JPM) and Goldman Sachs Group Inc (NYSE: GS) both report earnings this week.

In a recent report, Eagle Bay Capital's JC Parets analyzed each from a technical standpoint.


Looking at JPMorgan, Parets said it's only something he's bullish on if shares are "above the uptrend lines from 2011 & 2013." He added, "With a rising 200 week moving average this is not something we want to be short bigger picture, but no reason to be long if we are below these uptrend lines.”

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With limited upside based on overhead supply from resistance this year, Parets has seen “little reason to force this long," adding that "on a relative basis, it is still in a 2-year downtrend and momentum has not confirmed recent highs.”

So, when would Parets buy into JPMorgan? Only if the stock was above its highs from 2014, "with a target just below 67 based on the 161.8% Fibonacci retracement from the 2014 correction."

The stock closed at $61.70 per share last week.

Goldman Sachs

Parets isn't much more bullish on Goldman shares.

From a structural perspective, he said, the stock remains "in a nice uptrend," but is close to key resistance from its 2009 highs. "Momentum is doing its best to break this downtrend line but nothing so far," Parets added.

"With a flat 200-week moving average and 2 year downtrend in relative strength, the risk/reward has not and still does not favor the bulls.” If shares were in in the low $140 range, he said he'd be a "much better buyer."

The stock last traded at $195.64 a share.

"I would argue that a sustained breakout above the 2009 highs would be very bullish, but we have to wait for that to happen before even discussing its implications," Parets concluded.

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