JPMorgan Chase (JPM) shares experienced a significant drop of more than 5% on Tuesday, marking their largest one-day decline since June 2020. The decline came after the bank’s president expressed concerns about Wall Street’s expectations for net interest income and expenses in 2025, stating that they were overly optimistic given the impending interest rate cuts and lingering inflation.
JPMorgan’s stock has been performing well this year, with a 21% increase since the beginning of the year. This growth can be attributed to the persistently high lending rates in 2024, which have allowed the bank to earn favorable yields by lending money or investing in securities. However, the recent comments from the bank’s president have raised concerns among investors.
To gain a better understanding of JPMorgan’s stock performance, let’s take a closer look at its chart and apply technical analysis to identify important price levels to watch.
September Selling:
JPMorgan shares have been trending higher within an ascending channel since early April, which has helped establish clear support and resistance areas. However, a late-August rally into the upper trendline of the pattern, combined with an overbought relative strength index (RSI) reading and a new record high, marked a turning point for the stock.
Since the start of September, selling pressure has intensified, with Tuesday’s drop occurring on the highest trading volume since mid-April. This indicates active participation by larger market participants, such as institutional investors and pension funds. The stock closed at $205.56, reflecting a 5.2% decline.
Lower Chart Levels to Watch Out For:
Investors should monitor three key lower areas on JPMorgan’s chart that may come into play if the selling pressure continues. The first level to watch is $200, which is near the channel’s lower trendline. This level may also find support from a trendline connecting the prominent early April swing high with a range of comparable trading levels over the past five months, including Tuesday’s low.
If the stock falls below $200, it could revisit the $191 level, where it may attract buying interest near a brief period of consolidation that formed on the chart towards the end of the stock’s trending move from October to March. This level also aligns with the May, June, and August lows, as well as the 200-day moving average.
A more significant correction could trigger a decline to around $180, which is likely to find support near the mid-April pullback low. This would represent a 12% fall from Tuesday’s closing price.
Key Overhead Price Level to Monitor:
If JPMorgan shares resume their upward trend, investors should pay attention to how the price reacts to the ascending channel’s upper trendline, currently around $227. A volume-backed breakout above this pattern could indicate a continuation of the stock’s longer-term uptrend.
In conclusion, JPMorgan’s stock experienced a significant decline following the bank president’s comments about future net interest income and expenses. Investors should closely monitor key lower price levels at $200, $191, and $180, as well as potential overhead resistance around $227. These levels will provide important insights into the stock’s future performance.
Disclaimer: The comments, opinions, and analyses expressed in this article are for informational purposes only and should not be considered as investment advice. The author does not own any of the mentioned securities.
