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News

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News

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News

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News

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Another nice quarter for NVIDIA?

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Alibaba delivers earnings miss, shares slide

Asset Watch

Buy the JPMorgan dip?

Wednesday, April 17, 2024

Despite outperforming analysts’ revenue and earnings per share (EPS) estimates for the seventh-straight quarter, JPMorgan’s cautious guidance sunk the stock by more than 6% on Apr. 12. CEO Jamie Dimon said:
 “Many economic indicators continue to be favourable,” [but] looking ahead, we remain alert to a number of significant uncertain forces” including “geopolitical tensions” and “a large number of persistent inflationary pressures.”
However, Piper Sandler Scott Siefers said, “The guide still strikes us as ultra-conservative… We suspect the unchanged outlook will disappoint investors a bit and could weigh on the stock in the immediate term.”
With Dimon’s pessimism more a function of what may happen versus what is happening, could the largest U.S. bank outperform if the U.S. economy remains resilient?

If you’re looking for clues, there are two key technical levels you should be paying attention to see whether JPMorgan can maintain its constructive outlook.

 

Firstly, the 20-week moving average stands near $179, so if the stock trades above it, the short-term outlook is bullish. Then secondly, the area near $173 marks the breakout above the previous all-time highs, which means a retest could facilitate support slightly below the 20-week MA.

 

Monitoring both levels could provide insights into whether the Apr. 12 sell-off was simply a small correction or the beginning of something more ominous.

 

So, should we blame sentiment for JPMorgan’s short-term struggles, or are investors front-running a potential recession?


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