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JPM Kicks Off Earnings Season With a Bang

Several layers of technical trouble still loom large for the equity, though

Digital Content Manager
Oct 13, 2020 at 9:16 AM
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JPMorgan Chase & Co. (NYSE:JPM) is kicking off the latest earnings season on a high note. The stock is up 0.6% at $103 this morning, after the bank company posted third-quarter profits of $2.92 per share, and $29.1 billion in revenue -- exceeding Wall Street's estimates. JPMorgan also announced 4% growth for the quarter, citing lower-than-expected credit loss provisions, and the recent trading boom. 

Now, JPM is poised for its highest close in over a month. The stock has had a positive run on the charts this month, with recent support coming in at the 10-day moving average. Month-to-date, the security is up over 6.4%, though familiar pressure at the $104 mark looms up ahead. Plus, JPM is squaring back up with its 190-day moving average -- a trendline that snuffed out its early June rally. 

Analysts have yet to comment on today's news, though the door looks open for bull notes, especially if JPM manages to take back those previously mentioned technical levels. Coming into today, 10 members of the brokerage bunch called the equity a "buy" or better, while seven said "hold," and one called it a "strong sell." The 12-month consensus price target of $116.10, on the other hand, is a solid 11.4% premium to last night's close. 

Options bulls, meanwhile, look to be fully on board, per JPM's 50-day call/put volume ratio of 3.13 at the the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands in the 72nd percentile of its annual range, implying a healthier-than-usual appetite for long calls of late. 

 

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