Tomasz Wisniewski
Axiory Global Ltd.
After Friday’s analysis of Intesa Sanpaolo, we continue our journey through the banking sector. In today’s piece, I have a beautiful setup on a more well-known bank – JP Morgan.
First, look at the chart on JP Morgan. We have a beautiful head and shoulders pattern. The formation started in February however its fate is being decided as we speak, while the price is currently testing the neckline (blue) after drawing the right shoulder.
What will happen with the neckline will decide the future direction of JPM. We’re still waiting for the open bell in the US but yesterday’s session ended with a small victory for buyers. The price managed to defend the neckline with the false bearish breakout pattern (red). Usually, this kind of formation is a great buy signal.
If we combine that with a generally positive sentiment on stocks (another case of buying the dip!) we get a very bullish mixture here. Current sentiment on JPM seems positive and will stay this way as long as the price stays above the neckline.
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