For Traders

Analytical Reviews

Stock Markets

23.04.202118:32 Forex Analysis & Reviews: Megaphone pattern in JP Morgan stock

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

The stock price of JP Morgan not only has erased all the 2020 losses from the pandemic outbreak, it has managed to climb to new highs. Price is trading around $150 and although technically trend remains bullish, there are some warning signs that should not be ignored by traders.

Blue lines - megaphone pattern (bearish)

Red line- expected price path

JP Morgan stock price has been trading in a bullish trend since the low around $77 back in March of 2020. Price continues making higher highs and higher lows. However the megaphone pattern we see in the weekly chart above provides a warning for bulls, as there are high chances of a major reversal. Noticing also the weekly RSI pattern, we observe that despite the new highs in price the RSI is making lower high. This is a weekly bearish divergence. This is another warning. So far price seems to have made at least a short-term top around $161. Price is now pulling back. A move towards $130-$120 is highly likely. However we should not forget the megaphone pattern and the possibility of a bigger move lower.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.