The last two down days on heavy volume really bring this chart alive. The long term uptrend lines (across the lows and the lowest highs) don't bother me because obvious support levels are often broken. This is the 3rd time that JPM has formed this type of pattern (see the first quarter of 2013, and the 3rd quarter of 2013). The pattern needs downside volume to continue to confirm this pattern. Overall the drop in January was on heavier volume than the rally in February, so the trend is down from the "volume perspective".
$58.50 stop loss and look for $52 within a few weeks.
Look for sharp bounces once the obvious $54 support is broken. For nimble traders, you can capture additional profits by covering under $54 and re-shorting over $55 several times on the way down.
Tim
9:20AM EST, Wednesday, 2/26/2014
$58.50 stop loss and look for $52 within a few weeks.
Look for sharp bounces once the obvious $54 support is broken. For nimble traders, you can capture additional profits by covering under $54 and re-shorting over $55 several times on the way down.
Tim
9:20AM EST, Wednesday, 2/26/2014
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