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  • Swing Trade Idea (JPM) – January 18, 2024

    Jan 18, 2024 Swing Options Tips Comments Off on Swing Trade Idea (JPM) – January 18, 2024

    Our bearish trade for Thursday, January 18th is JP Morgan Chase & Co. (JPM). JPM is part of the Financial Sector, which has performed at -1.27% over the last week, with JPM underperforming relative to its sector at -2.09% over the same period.

    JPM formed a top at $170 which is also the 2021 high for this stock. As this level acted as an area of resistance after a multi-month rally, JPM is currently in an overbought state and we therefore expect to see a pullback. The next areas of support are at $160 and then $155.

    As a close, if JPM were to trade above $170 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves below $1.73.

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