Trading Idea - Is JP Morgan close to Resistance?

Published on Wednesday, 08 February 2012 06:24 Written by TradersHuddle Wire

New York, February 8th (TradersHuddle.com) - Shares of JP Morgan Chase & Co. (NYSE:JPM) are trading very close to calculated resistance at $38.50 with the current price action closing at just $37.87 placing the stock near levels that make it difficult to buy.

JPMorgan Chase & Co. (NYSE:JPM) provides global financial services and retail banking. The Company provides services such as investment banking, securities services, asset management, private banking, card member services, commercial banking, and home finance. JP Morgan Chase serves business enterprises, institutions, and individuals. JP Morgan, the second largest U.S. lender, was founded in 1823 and is headquartered in New York, NY.

JP Morgan's current stock range is defined by current calculated support defined at $34.50 and by the resistance level at $38.50, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for JP Morgan, as the stock is well above support, however, as the stock pulls back towards $34.50 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $38.50 then traders will get an opportunity to enter JP Morgan stock by establishing a position as the stock moves to a higher range.