JP Morgan Chase Co.: wave analysis 16 January 2019, 08:39

JP Morgan Chase Co.: wave analysis

16 January 2019, 08:39

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	101.68
Take Profit	91.53, 85.90
Stop Loss	104.60
Key Levels	85.90, 91.53, 104.60, 113.00

Alternative scenario
Recommendation	BUY STOP
Entry Point	104.65
Take Profit	113.00
Stop Loss	101.85
Key Levels	85.90, 91.53, 104.60, 113.00

On the 4-hour chart, a downward correction forms as the fourth wave of the higher level 4 of (3). Now, the wave c of 4 is developing, within which the wave of the lower level (iii) of c has formed, and the development of a local correction as the wave (iv) of c is ending. If the assumption is correct, the price will fall to the levels of 91.53–85.90. In this scenario, critical stop loss level is 104.60.


Main scenario
Short positions will become relevant during the correction, below the level of 104.60 with the targets at 91.53–85.90. Implementation period: 7 days and more.
Alternative scenario
The breakout and the consolidation of the price above the level of 104.60 will let the price grow to the level of 113.00.