Technical Analysis

JP Morgan Chase & Co Starting 2023 Strong

By Antreas Themistokleous

12 January 2023

Shares in JP Morgan Chase & Co (symbol ‘JPM’) steadily rose last quarter, with the price regaining small losses. JPM is expected to release its earnings report for the quarter ending December 2022 on Friday 13 January, before market open. The consensus estimate for earnings per share is $3.17 (USD) compared to the result for the same quarter last year of $3.33.  

Usually, banks’ shares make gains in an extended cycle of monetary tightening, as happened in the case of JP Morgan. Even though JPM is a big investment bank, its presence in mobile payments is not so pronounced—at least, it wasn't until they invested a hefty $800 million in Greek FinTech “Viva wallet”, which pushed their share price in the last week of December.  

On the technical side, the price is on track to regain in full the losses incurred in early December while it has currently covered almost 70% of those losses at the time of this report.

While all indicators support the overall bullish momentum, the 50-day moving average is trading well above the 100-day moving average, and the faster 20-day, trading above the 50 and 100 SMAs. We observe the price trading above the upper band of the Bollinger bands and the Stochastic indicator approaching the extreme overbought, so it is possible to witness a minor correction to the downside in the following sessions before resuming to the upward movement.

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