JP Morgan Chase & Co.

(JPM)
JPM’s fluctuations since the middle of 2010 have been limited from $35.16 to $41.70. The trading range
is contracting bit by bit, until recently the stock pushed upwards reaching $41.43, at the roof of the
trading range. Will the trading range be broken? Or will it be pushed back to the lower area yet again?

Indicators suggest that this time the push beyond the range resistance may have a good chance to
succeed. However, just like other similar patterns, this typical consolidation tends to end up with the
price slipping back to the old trading range. This means, the breakout could be happening, but merely
temporary. MACD is supportive for a move upwards, while EMAs are neutral, going relatively flat as the
stock gyrates up and down between $35.16 and $41.70. RSI is neutral, so there is no danger for the
stock getting overbought.

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Statistics

15.00%

10.00%

5.00%

0.00%
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
09 10 10 10 10 10 10 10 10 10 10 10 10
-5.00%

-10.00%

0.00%
YTD 12-Mos
-0.50%

-1.00%

-1.50%

-2.00%

-2.50%

JPM did not have a superb year so far. The stock only saw 5 winning months while its YTD performance
ended in the red (-0.58%). Month-to-date however, the stock has produced 10.78% return, the fourth-
best among the Dow 30 stocks.

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The strategy

SUPPORTS LAST RESISTANCES

12/10/2010

36.21 37.11 39.06 39.50 40.46 41.43 41.70 43.22 45.12 45.76 48.20

Upon successfully breaking out of the current trading range, JPM should aim directly at $45.76 before it
would come face-to-face with the next barrier at $48.20. Support at $39.06 is expected to hold off
selling pressure, so any attempt to push the stock back inside the trading range could be used as an
entry opportunity for new longs.

Disclaimer: This report is provided for information purposes only. It is not an offer to sell or to buy any
securities. This report has been prepared based on sources believed to be reliable, but there is no
assurance or guarantee regarding its completeness & and accuracy. The author accepts no responsibility
or liability arising from any use of the report.

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