JPMorgan Chase (NYSE: JPM) Aiming for New All Time Highs

JPMorgan Chase (NYSE: JPM) is the largest bank in the United State. It is a multinational banking and financial service provider that was formed as a result of a merger of several banking companies in 1996.

The Banking sector took its biggest hit during the financial crisis in 2008 as many banks announced bankruptcy and other barley managed to survive .However, based on performance of the top 5 US Banks over the past 12 years, JPM outperformed the Banks industry as it managed to double its stock price above 2007 peak while the rest are struggling to recover against the same peak.

US Banks Performance

Top 5 US Banks Performance

Looking at the Monthly chart for JPM, we understand that 2008 crash was just part of a larger 9 years technical 3 waves correction which started since 2000 (Dotcom bubble) then ended at 2009 low. Up from there, the stock started rallying higher in an impulsive 5 waves structure making new all time highs along the way.

Based on Elliott Wave Theory, JPM is trading within the wave ((III)) which is considered as the strongest leg in the entire cycle and therefore the stock will be seeking further gains until it ends the cycle from 2009 low.  Currently, JPM is advancing in the 5th leg of wave (III) which will be followed by a pullback in wave (IV) then again the stock will resume the rally higher.

JPM Monthly Chart 04.23.2019

JPM Monthly Chart 4.23.2019

Switching to the 4H chart for JPMorgan, we see the current bullish cycle which started since wave IV low in December 2018 approaching the target area around the 100% – 161.8% Fibonacci extension area $115.4 – $126.1 from where short term pullbacks can be seen in 3 or 7 swings before further upside takes place.

JPM 4H Chart 04.23.2019

JPM 4H Chart 4.23.2019

We use our proprietary pivot system to tell us when a cycle has ended so we need to switch to a different degree. Consequently as long as pivot at $98 low remain intact, JPM will remain supported and it will be aiming to break higher above 2018 peak making new all time highs.