JPM was in a huge symmetrical triangle, and a few days ago, it broke out of it. However, while breaking out of it, JPM was already overbought, and there is a small chance it can continue with this pump further without cooling down.
Yesterday it made a huge bearish reversal engulfing candle, which is showing the turnaround is here. MACD is trying to turn down, while RSI, from overbought territory, is trending down.
For bulls, the only chance is for JPM to stall here, stop its dropping above the trend line on small volume for several days, and then break strong up.
For bears, well, if JPM returns to the symmetrical triangle, it would represent an extremely powerful bearish pattern called a fake breakout or better call it a bearish dead hook and would indicate a strong drop is ahead of us. The drop would be almost certain towards the 200-day MA and upsloping trendline around $144.
Yesterday it made a huge bearish reversal engulfing candle, which is showing the turnaround is here. MACD is trying to turn down, while RSI, from overbought territory, is trending down.
For bulls, the only chance is for JPM to stall here, stop its dropping above the trend line on small volume for several days, and then break strong up.
For bears, well, if JPM returns to the symmetrical triangle, it would represent an extremely powerful bearish pattern called a fake breakout or better call it a bearish dead hook and would indicate a strong drop is ahead of us. The drop would be almost certain towards the 200-day MA and upsloping trendline around $144.
Consistency is the key of success....