Technical Analysis Predictions for JP Morgan Chase - JPM
Chapter VIII: Volume Stratification Analysis (or VSA) follows price behavior in relation to historical volumes of JPM stock sales. Knowledge of these behaviors gives us a quantitative metric useful for understanding Support or Resistance Levels, and predicting their strength.
Part I: The Volumetric Profile for JP Morgan Chase.
The Volumetric Profile is the central concept behind Volume Stratification Analysis. This Profile is simply the cumulative volume over the history of the stock, distributed according to price range. The red bar marks the price range corresponding to the current price of JPM shares. |
Part II: Primary Volumetric Support and Resistance for JPM common stock.
Blue bars depict the Volumetric Profile for various price levels of JP Morgan Chase. The thick orange line is the Volumetric Price and the maroon line is the Secular Price. General Volumetric Health is 1 on a scale from 1 (best) to 3 (worst), because the price is above the Volumetric line, indicating some positive market sentiment. |
A few layers of volumetric turbulence exist that could provide support on the downside. The most significant of these is found around $38.
|Support Level ID||Price Range||Peak Magnitude|
|1||$38.00 - $38.99||2.64|
|2||$33.00 - $33.99||2.23|
|3||$20.00 - $20.99||0.84|
|4||$15.00 - $15.99||0.51|
|5||$8.00 - $8.99||1.10|
Looking above today's price, there no significant resistance level to act as a ceiling on upward movement. |
Part III: Secondary Analytical Support and Resistance for JP Morgan Chase Stock Prices
Secondary Support Levels for JPM
Horizontal maroon lines indicate Negative Volumetric Peaks. Price intervals with these characteristics are often associated with gaps, although they sometimes operate as support levels. Quarterly and yearly turn-arounds are circled. Only one volumetric minima (valley) is to be found near the $11 level. |
Secondary Resistance Levels for JPM
Here, the horizontal lines mark the points of Maximum Negative Slope in the Volumetric Profile. These strata are known to act as resistance levels against upward movement, and are sometimes associated with yearly and quarterly tops. Also, as is typical of resistance levels, they may do double duty as support, but that is not the typical case.|
Companies in the News:
|In the news, Friday, February 18, 2011: An unfavorable condition has developed with Aetna Inc., ticker symbol AET. Also, there are breaking events concerning Dollar Tree, Inc. (DLTR) and First Niagara Financial Group Inc. (FNFG)|
More JPM Technical Analysis Topics
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