JP Morgan Chase Exhibiting Signs of a Continuation to the UpsideUpcoming Earnings:
JP Morgan Chase & Co. (ticker: JPM) is scheduled to report earnings before the market opens on 11 October. The consensus earnings per share (EPS) estimate for the fiscal quarter ending September 2024 is US$4.04. The reported EPS for the same quarter a year prior was US$4.33.
Upside Strength; Price Rebounding from Ichimoku Cloud
Basic chart analysis shows that the stock is in an uptrend, displayed through price trading above the 200-day simple moving average (white at US$194.91), structural higher highs and higher lows, and a rising Average Directional Index (ADX) indicator. Traders typically look for the ADX to climb above 25 to reflect strength in the trend.
You will also see from the Ichimoku Indicator that the Ichimoku Cloud – formed by the Leading Span A at US$210.85 (green) and the Leading Span B (orange) at US$208.19 – has buyers and sellers battling for position within its limits. As of writing, the Leading Span A is above the Leading Span B, a bullish signal. However, Ichimoku traders will likely be cautious at current levels because the Ichimoku Conversion Line (blue at US$208.65) recently crossed below the Base Line (red at US$213.05), a bearish signal. Therefore, a crossover here back to the upside could trigger stronger commitment from bulls in this market (this is a confirmation signal that traders commonly employ for longs out of the Ichimoku Cloud). Another bullish confirmation signal often used is price crossing above the Base Line.
Price Direction?
As of current price levels, buyers are unlikely to commit. However, a price close above the Ichimoku Base line could attract bulls, with the Conversion Line crossing above the Base Line likely to fuel further buying and challenge all-time highs of US$225.48.