Trading JP Morgan

Published on Thursday, 02 September 2010 06:00 Written by TradersHuddle Staff

New York, September 2nd (TradersHuddle.com) - Shares of JP Morgan Chase & Co. (NYSE:JPM) closed the trading session at $37.74 near its 50 day moving average currently set at $38.52. JP Morgan's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

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.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $35.55 and calculated resistance at $41.24. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by JP Morgan shares.

Traders should evaluate their trade if they want to establish a position on JP Morgan given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.