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JPMorgan Case (JPM) - Stalking the Retreat Towards Key Support Area

Many believe that the recent pullback in bank stocks could be an opportunity to snatch them up. I tend to agree, but in the short-term, we can probably wait a little longer.

"According to Bloomberg, 29 out of 39 analysts suggest a Buy on JP Morgan stock while 10 recommend a Hold and none of the analysts rate a Sell. The 12-month target price on the stock is $75." (bidnessetc.com)

When we look at the JPM weekly chart, we can see that if price falls to the 50-54.50 area, it will test some support and support/resistance levels.

JPM Weekly Chart 9/28


(click to enlarge)

From a technical perspective. if we see price stall in the 50-54.50 area, we should be ready for a buy, with a stop below 50. Now, to the upside, we should first limit our bullish outlook to the 62-62.50 with a more aggressive target to 65.00 - just in case JPM is actually forming a large price top.