JPMorgan is the largest bank in the US and the sixth largest bank in the world by total assets. It has separate divisions for investment banking, commercial banking, retail banking, credit cards, and wealth management. The bank’s competitive advantage comes from its scale, sound risk management, and diversification. Though banks in general face uncertainty in the near term, JPMorgan’s low-cost depositor base and multiple revenue sources are moats that boost its long-term prospects.
The long term monthly chart of JPMorgan shows a steady uptrend that began in 2012 and continued till January 2020. From January onwards, the stock fell significantly by 45% over a three-month period. The price briefly broke the long-term trend line as well as a historical support level at $81.
Starting April 2020, however, the downtrend reversed, and the price bounced off the bottom of the long-term trend as well as the support level at $81. The price has since risen by about 20% and now looks set to re-test the resistance level at around $116. Stop loss can be placed below the bottom trendline around $80.
Position taken today at $ 98.28 with stop loss 18.6% below at $80. With short term take profit at $140 giving a return of 42.45%
On the video and images above you will see the reason this stock was selected.
You will see the image is of a monthly chart of the stock showing the long-term upwards trend formed over the years. You will also see the entry point and the where the stop loss is placed. For more information please watch the video given.
Once it is time to move the original stop loss up you will see an additional image.
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