JPM is on track for a 21.6% gain in 2024 and showed resilience yesterday by quickly recovering from its fall following the redefinition of the Basel rules
JPMorgan Chase (JPM) shares fell 8% in September, cooling from their all-time high of $225.48 hit on Aug. 30. It is currently trading at $206.99 and it could be a good time to take advantage of the dip , if historical precedent is to be followed, as this pullback led JPM to find itself in a key uptrend.
The trend in question is the stock’s 100-day moving average. According to analysis by Rocky White, senior quantitative analyst at Schaeffer’s, JPM has hit this average seven times over the past three years . For his study, White defines this situation as when the stock has traded above the moving average 80% of the time over the past two months and closed above the trend in eight of the past 10 sessions before approaching the moving average.
Historically, following such pullbacks, JPMorgan stock averages a 5.9% return a month later , for a 71% success rate. A move of similar magnitude would put the stock nearly closing the September bearish gap and back near its all-time highs.
