Blue-Chip Bank Stock Boasts Bullish Signals

Morgan Stanley recently hit JPMorgan Chase & Co. (NYSE:JPM) with a double-upgrade, after noting several factors that could help the blue-chip banking giant moving forward. While the bull note has failed to provide immediate tailwinds, a bullish signal is flashing on the charts that could give JPM a big boost. 

Specifically, JPMorgan Chase stock just came within one standard deviation of its 40-day moving average, after a significant amount of time spent above this key trendline. According to additional data from White, four similar signals were observed over the last three years. JPM enjoyed a positive return one month later twice, averaging a 3.9% gain, and a move of similar magnitude from JPM's current perch of $132.18 would put the shares at $137.34.

The equity could use a boost to escape 2022 without losing too much ground, as JPMorgan Chase stock currently stands 16.3% lower year-to-date. Should JPM turn its 4.1% December deficit around, it could potentially nab a three-month winning streak.

Key contrarian signals are flashing in the security's options pits, too. JPMorgan Chase stock's Schaeffer's put/call open interest ratio (SOIR) of 1.07 stands in the 84th percentile of its annual range. What's more, JPM's 10-day put/call volume ratio of 1.49 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 92% of readings from the past year. An unwinding of all this pessimism could bode well for the shares.

Now might be the perfect time for investors to speculate on the stock's next move with options. The bank stock's Schaeffer's Volatility Index (SVI) of 33% sits in the 32nd percentile of its annual range, indicating that now is an affordable time to play JPMorgan Chase stock.