Forty dollars a share is the magic number for JP Morgan. Yesterday JP Morgan closed up, but still below $40 per share. That's good news for our short position. However the double bottom formation is becoming more obvious and ominous.
You can see it in the chart but the shares hit $39.44 on June 24th, then recovered to $40.44 on July 1 and now are back under $40 at $39.62 where it closed last night. What happens in this range is crucial, it's the difference between making a big gain or being stopped out for a breakeven trade. There won't be any help from the stochastic as it is buried in the oversold range. But we should get some movement today as JP Morgan reports earnings before the bell.
We entered a full short position on JP Morgan $42.75, then moved our stop down to that point. We have done all we can do as far as I can tell. All there is left is to wait and watch.
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