Below is what we discussed about JPMorgan Chase & Co. (JPM) yesterday morning prior to earnings.
The negative technical set-up outlined below proved telling for directional-price action ahead of the news.
In reaction to earnings, JPM declined and violated its Aug- Oct support line, and is negatively positioned for downside continuation that tests the Oct. low at 58.53. MJP 10/14/15
Truthfully, the chart set-up in JPMorgan Chase & Co. (JPM) heading into this evening's earnings does not provide me any "wink and nod" directional edge.
Significant and consequential resistance hovers between 63.15 and 64.60, which includes a recent negative crossing of the 50-Day EMA beneath the 200-Day EMA (The dreaded "Death Cross!”), and will have to be hurdled to trigger a meaningful Buy Signal.
Conversely, important, strong support rests between 60.50 and 58.50.
Only a sustained breach of the support zone will confirm that all of the action since May 2015 represents a still-developing medium-term top formation.
Right now, if only because the juxtaposition of the 50- and 200-Day EMAs is negatively sloped, and pressing on the price structure, my bias is to the downside for JPM. MJP 10/13/15
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