Update on JPM – JPMorgan looks like the potential head and shoulders pattern has now been negated in our view. Technically a close over the right shoulder would be a full negation of the pattern. We’re anticipating this due to overall stregth in the rest of the banking sector stocks: BAC, GS, etc..
JPM is opening today over the 21-week moving average. Negated head and shoulders patterns can develop into strong bullish moves to the upside. Still a bit too early to tell at the moment, but things appear to be going that way.
Here’s the weekly chart for the banking firm:
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