JP Morgan Chase (JPM): Bearish Scenario on the Horizon

30 Sep

You have to hear us out on this one, as we are presenting a very bearish scenario, but we will explain why we think it could unfold this way.

First, let's look at the weekly chart (yes, the weekly chart). This chart shows a near-perfect Elliott wave and Fibonacci count, respecting all the important theoretical points well. If this analysis is correct, we are currently in the last push of wave (5) to end this large cycle. After that, we should see lower prices for a higher wave II. We give the current wave (5) a maximum target of $271, but it is more likely to drop before we reach that level.



In the the main chart, we zoomed in to make it clearer. Everything depends on whether we are correct about wave (3) and wave (4). If our count is accurate, wave (3) should conclude between the 227.2% and 261.8% levels. JPM has formed a bearish divergence on the RSI, and if the stock drops below $190, we expect prices to fall further, ideally between $178.46 and $149, for one last push higher to conclude this cycle.

It will take some time until we get there, but good things take time, and we are ready for it to play out. Alerts are set, and the plan is in place. 😎