December 9 Chart of the Day - JP Morgan
Highly precise price action technical analysis offers the strongest trading edges and the most opportunities across the markets, making it the foundation of our reviews.
JPMorgan Chase (JPM), the largest bank in the United States and a benchmark for the entire financial sector, is pulling back nearly 5 percent today.
Traders are asking whether this sharp drop is cause for alarm or simply profit taking after a powerful run to new highs. With price reversing from a failed breakout just last month, this move brings JPM into a meaningful zone that could shape the next leg of the trend.
We'll review the chart from a price action perspective to identify potential levels of interest in both directions.
The charts highlight key levels where investors and traders alike will be watching closely.
Consistent profitable investing and/or trading requires a structured, rules-based approach to price action analysis. Proven processes, disciplined risk-reward management, and precise execution create the foundation for long-term success.
When combined with powerful mental performance strategies, this method becomes the ultimate blueprint for thriving in any market, on any time frame.
As requested, this analysis will take a price action technical analysis approach to assess key levels and potential next price moves for this chart.
Since May 2023, we've showcased over 675+ Charts of the Day and provide a Free Quick Start Guide to traders with ambitious income goals for our patent-pending NeuroTrading Method™.
Monthly Chart
The monthly chart shows a clean false breakout that occurred just last month as price briefly pushed above $318.01 before rejecting sharply. That rejection left a textbook wick reversal and set the stage for the current pullback.
From the most recent major swing, the important Fibonacci levels sit at the 50% retracement near $262.21 and the 61.8% retracement around $248.03. Both of these levels align with prior consolidation and stand out as the primary downside zones traders will watch first.
Beneath them, the longer-term structure highlights additional support near $229.53, then the confluence of the rising trend line and prior retracement levels around $204.34 and $199.58, and deeper history-based support closer to $178.06.
If price stabilizes above the 50% and 61.8% retracement cluster, the broader uptrend remains intact and the false breakout can be treated as a shakeout. A sustained move below $248.03 would increase the odds of a more meaningful correction into those lower supports.
With plenty of volatility traders have had much to be happy with and long term buy and hold investors have been greatly rewarded.
This kind of movement highlights why a cautious and well-informed approach is essential when evaluating a stock’s short to mid term outlook.
Weekly Chart
On the weekly chart the momentum fade after the false breakout at $322.25 is easy to see. Repeated rejections in that region created a lower high and produced this week’s decisive red candle.
Key downside levels include:
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$294.51
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$280.25
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50% retracement at $262.21
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61.8% retracement at $248.03
The $262.21 to $248.03 band is the most important support cluster. Holding this zone would fit the pattern of a normal retrace inside a strong trend. Losing it opens the door to $229.53 and then the longer-term support area tied to the rising trend line near $204.34 to $199.58.
Upside, any recovery rallies will face resistance first near today’s levels around $300 and then again as price approaches $318.01 and the prior false breakout high.
Only time will tell for sure what price will do next...
We’ve combined Fibonacci levels with key support/resistance zones and trend analysis to pinpoint potential price levels of interest and future targets.
With precision-focused charts like these, both traders and investors can confidently build and execute their strategies.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
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