Trade Alert: JPM on 200 day SMA
JPM crossed below the 200 day sma (green line) early on Tuesday. The level of support was 42.18. The price action moved easily through the line, which is a cause for concern if you're a bull. Tomorrow's price action will be a good indicator of whether this stock will continue lower or move higher off of the 200 day line.
Fundamentally, JPM is a very strong stock. There is no reason to think the company is in bad shape on this decline. In fact, this is an excellent buying opportunity and gets even better as the stock moves lower. Think of this like shares of JPM are on sale.
The last time JPM moved below the 200 day sma was about one year ago, May 5, 2010. The stock stayed below for almost 7 months before cleanly moving higher and maintaining its position.
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