JPMorgan Chase is one of the few shining stocks today on the Dow Jones Industrials Average, as it has kicked off the earnings season on a solid note by beating the earnings expectations set by market analysts.
JPMorgan posted earnings per share of $2.57 and a revenue of $29.211 billion in the 4th quarter, which bettered estimates of $2.32 and a revenue of $27.26 billion that had been put forward by Wall Street analysts. The figures represented a gain of 29.8% as against the 19% predicted by economists, making JP Morgan the shining light in today’s trading session which is so far in the red.
Revenue increase was largely from merchant services, auto revenues as well as consumer and community banking.
Read our Best Trading Ideas for 2020.
Technical Outlook for JPMorgan
The stock price of JPMorgan has broken above the ascending triangle on the weekly chart and continues to push into record territory. However, it is contending with the resistance line on the Andrew’s pitchfork at the 140.22 price level. A break of this price level will take the stock higher towards the next pitchfork resistance area.
The present price level however represents a completion of the measured move of the triangle. Any hints of profit taking may send the stock down to retest the 128.83 price level (4 Nov and 2 Dec 2019 lows). Supporting this view is the fact the oscillator is now in the overbought territory and the RSI signal line is now starting to turn lower.