Red lines -bullish RSI divergence
Black lines- Fibonacci retracement
JPM stock price remains in a bearish trend making lower lows and lower highs. So far there is no sign of a bullish reversal. However the RSI in the Daily chart has provided us with an important bullish warning. A bullish RSI divergence is a warning to bears that the downtrend is weakening. The price has made new lower lows but not the RSI for a third time. Price justifies a reversal and a bounce higher towards the 23.6% Fibonacci retracement around $126. As long as this RSI keeps diverging, I prefer to turn neutral JPM. Remaining bearish JPM at current levels is not worth the risk reward.
