Thursday, June 9, 2011

Trade Update: JPM

The slow drip down continues for JP Morgan. You can see the double top at the $48 zone and the 45 degree downward channel that it has formed since April. We went short at $43.75 and I was interested to see what would happen when it hit support at $42.00. As you can see there was barely a bounce. Now I am more than a passive spectator as JPM drifts downward towards it's $40.00 support level. If it drifts below that we could see it flutter all the way down to $36.00 before we need concern ourselves with anything resembling support.

If JPM drops under $40 we will move the stop down.

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