Score 7.5 (out of 10): JPMORGAN sets up for -2.3% drop in 2 weeks

71

What’s Going On Here?

Banks might be struggling with a declining US yield curve (2yr vs. 10yr yield spread) as the interest margin opportunity is low.

Why Now?

JPMORGAN CHASE & CO has triggered a new technical analysis signal. During similar occasions, JPMORGAN CHASE & CO shares had a median return of -2.3%, over the following 2 weeks – based on 10 historical occasions with 7 of those showing negative returns (70%). This sell signal for JPMORGAN CHASE & CO received a high score of 7.5 (out of 10). This insight was generated on 2022-April-1 with last price of 135.31.

What’s This Company About?

JPMORGAN CHASE & CO is in the Diversified Banking Inst business. Based on the last 2 years’ risk/return profile, this asset is seen as Moderate Risk. Ticker symbol: JPM US.

What’s My Risk / Reward and Time Horizon?

We found 2 weeks to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 132.22 (-2.3%) has been reached. Based on JPMORGAN CHASE & CO’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 140.71 (last price at 135.31), which is equivalent to a 4% rally.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ under (2), etc.

Previous episodes:

-13.6% (January-2022), -3.1% (November-2021), -3.5% (August-2021), 1% (April-2020), -11.6% (February- 2020), 1% (November-2018), -1.4% (August-2018), -3.7% (June-2018), -1.3% (April-2018), 0.4% (February-2018).

Historical Chart:

Summary:

NameJPMORGAN CHASE & CO
ViewUp
Star (1 to 10)7.5
Target-2.3%
Time2 weeks
Hit Rate70%

———————————————————————

Leave a Reply