What’s Next for Strong Financial Stocks JPM and GS
Leading Financial stocks JP Morgan (JPM) and Goldman Sachs (GS) topped the list of “Strong Dow Jones Stocks Getting Stronger” last night.
Let’s do a quick update and plan what opportunities are in store for trading these big names.
Goldman Sachs Daily Chart (GS):
After the January sell-swing ended into the $172.50 level, buyers propelled the stock $25.00 higher toward the current $208.00 per share peak.
At this point, we’re seeing a logical pullback (retracement) that targets the $205.00 area (or slightly lower) which is the overlap of the May low and 20 day EMA.
If sellers instead trigger a larger retracement, Goldman shares would be a short-term bearish support-break candidate under $203.00 to target the $200.00 level again.
Otherwise, this stock continues to remain on a “strong getting stronger” watchlist to buy the pullback near $205.00 or bullish breakout above $208.00.
We’re seeing the same thing – at different levels – in JP Morgan Chase (JPM):
Similarly, buyers propelled JPM up from $54.00 to the current $67 per share peak.
A logical retracement takes price toward the $65.00/$65.50 support confluence and aggressive buy zone.
A continuation of the uptrend suggests a buy at current levels while a trigger-break under $65.00 sets in motion a sell-swing down toward the $64.00 support target of the lower Bollinger Band and rising 50 day EMA.
I color-code my charts in terms of “Price Pathways” from which we build short-term trades.
Continue following these names and note what happens next at these key uptrend support levels.
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Corey Rosenbloom, CMT
Afraid to Trade.com
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Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).
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