Home > Apprentice Trader Journals > $Debbie: What is the trade in JPM?

$Debbie: What is the trade in JPM?

JPM on the daily chart has been on an uptrend since, at least, March. The March Low was 14.96 while to date October’s high is 47.47.

Furthermore, JPM has been trading in a range between 40.26 (first week of August) and 47.47 October’s high. The trend line from march was temporarily broken around October 2 nd only to bounce off of the lower end of the range of August and September.

On October 16th March’s trendline was tested again and so far held. If we break the low of the candle that rests on that trendline (daily chart), 46.00, then we may be in for a pullback. If we bounce of the trendline and break 47.47/.50 and hold then perhaps there is some more upside in sight. If that happens there is little “noice” between there and Oct. 08 highs of 50.60/.65. The monthly time frame shows a trend since March while the hrly chart shows sideways movement and the fiftenn minute shows at least 3 day range bound conditions.

The trading scenario, at best at this time, is buying support and booking profits close to resistance. Taking a short position could be dangerous as the larger time frame price action is to the long side. This developing trader would not short JPM.

As a matter of fact, unless there is an obvious, strong, intraday momentum move to the upside that could qualify as a breakout trade to test that 47.47 high and possiblycontinue the trend then a trade off of a significant level could be a decent test trade as long as one keeps a tight hold on it.

Better yet,  if this 47.47/.50 area is broken and holds above then I would look for a continuation of the trend and look for a long entry. For now this developing trader is on the sidelines as far as JPM goes.

 

Profitable Trading All!!

 

Debbie

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