JP Morgan Approaches Major Resistance Level As Market Weakens

The banking sector has been making headlines this year, good and bad, but investors are still keeping their eyes on a few banking stocks as the playing field shifts among the companies in the sector a bit. One of the biggest banks in the country got a little bit bigger as a result of this shift and is now in our focus for a possible trade idea.

JP Morgan (JPM) has established a overhead resistance level at 144 and is slowly approaching that level this week. While the market has shown signs of a possible slow down, eluding to a possible pullback, this stock could very well be preparing to do the same. After trading somewhat sideways for the past couple weeks, JPM is on the move upwards, but still has this big hurdle to clear.

If the market pushes higher we expect JPM to follow along. However, any pullback that takes place could spell a retreat in prices for the banking giant, as well. Currently, the trade would be puts as we approach this key resistance level, but price action would determine whether or not that trade becomes valid.

If the stock were to break through this level in a meaningful way, then you would want to look for our classic break out and retest set up to ride the momentum higher. Keep an eye on the rest of the market, as well as the price action of this stock in order to determine your next move. Nonetheless, keep this trade on your watchlist until something breaks.

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