Saturday, August 27, 2011

Trade Update: JPM

It looks like J.P. Morgan JPM bottomed out at $34.82. On the daily chart you can see a rather sloppy double bottom forming at around $34. It's impossible to call it to the penny, but there does seem to be a range of support between $34 and $36. It is on that basis that we went long JP Morgan at $36.16 with a $1.50 stop. Technically I should give it more room to move. Namely it would be more correct to put the stop below the 52-week low at $34.82, but I don't have nearly that much patience JP Morgan on the long side anyway.

There on the five-day chart you can see some support at $35. So, I think our stop just $0.44 below is close enough. Let's just keep it tight.

Buy 100 JPM @ $36.16
Stop @ $34.66

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