Double Top In JP Morgan?
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
JP Morgan Chase & Co. (NYSE: JPM) shares were trading lower by $0.45 (0.8 percent) at $65.60 in Friday's session. With no relevant news out on the issue, let's take a look at the technicals to explain the weakness in price.
After rallying with the broad market on Thursday and making a new 15-year high at $66.18, it peaked just ahead of that level off the open at $66.16. This alerted technical traders to a potential double top and exerted selling pressure on the issue.
So far, it has surpassed Thursday's low ($65.71), reaching $65.50, which coincides with Wednesday's close ($65.52) and has not been able to state much of a rebound. If the decline continue beyond the current low, the next identifiable support levels comes in at Wednesday's low ($65.06).
The latest analyst change on this issue came from MKM Partners in May 11, when it downgraded the issue from Buy to Neutral and maintained its $65 price target.
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