Despite the hype over its second-quarter earnings the shares of J.P. Morgan were remarkably subdued yesterday, closing up less than a dollar. Look at the final stick of trading and you can see what I mean. Notice also how the shares opened higher than they closed.
Today will be an important day for our trade. I think you can see the clear double bottom at $39. The double bottom won't be confirmed until $42 is breached. So, we have to hope that shares selloff back down under $40. However I am not too hopeful.
Look at how the stochastic is set up. It is oversold turning up and the red line is crossed over the blue line. You don't get more bullish than that on the stochastic.
Also notice the big volume tik yesterday. Hopefully some of that buying volume will taper off today.
On a positive note you can see that the 50 day moving average is moving down to the share price. Also the 100 day moving average has a negative slope as well. JP Morgan right now it is firmly ensconced in a down trend, but down trends classically break with double bottoms.
Right now all we can do is wait and watch and hold our stop firm at $42.75.
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