JP Morgan Chase&Co EW-Analysis
JP Morgan is approaching a long-term corrective phase.
In October 1990, JP Morgan formed a major bottom. From there, the stock initiated its first long-term impulse, creating green Wave 1. After the completion of Wave 1, this first impulsive fractal was corrected by green Wave 2.
Following this correction, the market expanded rapidly in a strong bullish move, forming green Waves 3 and 4. Recently, the market has shown a final rally, completing green Wave 5, which marks the termination of the green cycle and at the same time the formation of yellow Wave 1 of a higher degree.
We believe that yellow Wave 1 has now been completed, marking a major long-term high with the all-time high at $337.25.
From this point, we anticipate the market to shift from bullish momentum into a bearish phase, initiating a long-term corrective movement within yellow Wave 2. However, this corrective phase will eventually come to an end. Once yellow Wave 2 is completed, we expect the market to resume a strong bullish trend in the long run, beginning a powerful yellow Wave 3.
At the moment, however, the market appears to be entering this corrective phase. In addition, we have identified a Fibonacci retracement zone in which we expect the overall correction to find its bottom and where new sustainable bullish momentum could return.
This Fibonacci retracement zone is defined by:
- 50% at $170.22
- 61.8% at $130.81
- 78.6% at $74.69
With our long-term expectation in mind, this Fibonacci retracement zone represents prime buying or accumulation opportunities for this stock. Within this zone, we expect the currently approaching yellow Wave 2 and the entire corrective phase to come to an end, potentially initiating a new bullish cycle in the long run.
If any structural changes occur or if our Fibonacci retracement zone gets activated, we will provide an update immediately.
Kind regards,
Monalytics
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