It was not long ago when JPMorgan Chase & Co (NYSE: JPM) was trading for almost $15 a share. This was at the bottom of the S&P 500 when we saw the ticker read 666.67 as a low. A lot of stocks have bounced heavily since that point in time in March of 2009; JPMorgan Chase & Co (NYSE: JPM) was one of them. So keeping this in the back of our minds that individuals will find these current price levels as good areas to take profits, the selling forces in the market going into the end of the year may not necessarily been based upon valuations as much as profit taking, tax preparing, or re-balancing.
JPMorgan (JPM) has seeing sideways action between the $36 and $41.25 levels for the 2nd half of 2010. We think that this may be changing.
Looking at the chart, we can see JPMorgan Chase & Co has finally closed at a new weekly high within this channel for the first time since July of 2010. We think that the close we saw Friday of $41.43 is a bullish indication. The CCI closed with a bullish-breakout indicator (100+ reading) for the first time since March of 2010. It rose up 10% after that indication was confirmed. Needless to say, the chart below is worth a thousand words. If the worst of the financial crisis is behind us, then we may see JPMorgan (JPM) heading back to $48 per share over the next couple of months. With arguably the best CEO on Wall Street one could also suggest that the company is poised for a higher run not just on technicals alone, but on leadership and fundamental outlook as well.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.