Earnings season begins anew this week with financial companies as the major sector in focus, and banking behemoth JPMorgan Chase (JPM) will lead the charge on Wed., Jan. 15 in the premarket session. Second only to Berkshire Hathaway (BRK/A & BRK/B) in terms of market cap among the S&P financial sector, JPM boasts a valuation of about $675B after a powerhouse trading year during 2024 and sits only about -5% below its recent all-time highs of 254.31 from Nov. 25.

Like many other stocks, JPM saw a sharp rally after the U.S. presidential election on Nov. 5 and surged about +11.6% in one day. Shares have mostly held on to those gains, and the yearly Volume Profile study reveals a notable volume spike of very heavy trading activity near the 243 level; this suggests greater conviction behind this move to the upside, and also gives traders a potentially important price level to monitor. Further examination of the financial giant’s technical picture shows another noteworthy confluence nearby. The 21-day Exponential Moving Average, the 50-day Simple Moving Average, and the yearly Linear Regression Line are all right around the 240 level, with the 63-day EMA just below at around 235.

Momentum is something of a mixed picture. The Relative Strength Index (RSI) closed below 50 on Friday, which is a bearish signal. However, the Moving Average Convergence Divergence (MACD) showed a bullish crossover on Wednesday last week. Neither indicator seems to suggest a particularly strong trend in either direction, a view that is further bolstered by major shorter-term moving averages flattening and converging closer together. Consider as well that the Average Directional Index (ADX), an indicator that measures trend strength, shows a reading around 15.5. Anything below 20 suggests weak-to-no clear trend direction, so traders could look for this study to form a trough and start to trend up if directionality starts to increase.

If price rallies after earnings, the all-time highs near 254 are the most obvious upside point to watch. Beyond that, things get a little more tricky as there is no prior price activity to serve as guidelines. The yearly +1 Standard Deviation Channel study comes in near 262, so this could be one area for bulls to keep an eye on. To the downside, if price makes a serious move below the aforementioned confluence of indicators between about 240-243, look to the recent lows near about 230 and then the old highs near 225.

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