Bullish charts and fundamentals are lining up for JPMorgan Chase, says Frank Cappelleri
As a technician and CMT charter holder, I focus on price action first. But when the fundamentals reinforce the technicals, they always gets my attention. (After all, I also persevered through the CFA process many years ago.) JPM appears to have both working in its favor right now, something that became even clearer following yesterday’s strong earnings report. Let’s start with the daily chart: JPM had a wild session Tuesday following the release of its latest quarterly numbers. The stock initially fell more than 2%, then reversed sharply to rally nearly 6% intraday, ultimately finishing with a 2.5% gain. The result was an extremely large bullish engulfing candlestick, along with a new intraday high and all-time closing high. In fact, the candle engulfed nearly three weeks of the prior price action. Coming immediately after earnings, that reversal carries added significance, as investors now have a much clearer view of the state of the company. While the daily chart does not yet show a classical chart pattern, the technical backdrop is clearly bullish. With earnings now behind it, known company-specific risk has diminished, allowing price action to take center stage. As the second-largest holding in XLF (slightly) behind Berkshire Hathaway , JPM performance will continue to have an important influence on the Financial sector. Even though JPM made a new all-time high Tuesday, it is not extended by its own historical standards. We can see that by viewing the stock within this upward-sloping channel on the weekly log-scale chart. Since bottoming in October 2022, JPMorgan has remained in a well-defined uptrend, though certainly not in a straight line. The stock has experienced several sharp swings in both directions, with pullbacks consistently finding support near the lower boundary of the channel before resuming higher. Likewise, rallies have often paused after reaching or briefly exceeding the upper boundary. The stock now sits near the middle of that channel, suggesting it is not stretched. In fact, after spending much of the last few months in the lower half of the range, there is room for the stock to work its way back toward the upper half, where it spent much of 2025. The bottom line is straightforward: as long as JPMorgan remains within this channel, the long-term uptrend remains intact. Here’s the monthly log-scale chart going back to 2013. As we know, JPM has advanced at a remarkably consistent pace for more than a decade, meaning that buying virtually anywhere during that period has been rewarded. What catches our attention are the breakouts from multi-month and multi-year trading ranges. As is clear, those breakouts have repeatedly led to months — and in some cases years — of additional upside. With yesterday’s move to new all-time highs, JPM may be entering another one of those longer-term advancing phases. Altogether, we have a strong earnings report, a sizable positive reversal, new all-time highs, a stock trading near the middle of a well-defined upward sloping channel, and the potential breakout from a multi-year base. None of that guarantees future gains, of course, but the more technical factors that align — especially across multiple timeframes — the stronger the overall case becomes. —Frank Cappelleri Founder: https://cappthesis.com DISCLOSURES: None All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
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