JPMorgan Chase & Co. (JPM) is grabbing attention Monday as investors gear up for fourth-quarter earnings results hitting the tape Tuesday before the opening bell. The banking giant has had quite a run, but recent trading shows some hesitation creeping in.
JPMorgan Heads Into Earnings With Strong Momentum But Short-Term Wobbles
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What Wall Street Expects
Analysts are looking for earnings per share of $4.95 on revenue of $46.20 billion. That would represent a slight dip from the previous quarter, when JPMorgan delivered earnings of $5.07 per share—nicely ahead of the $4.84 consensus—along with revenue of $47.12 billion, which also topped expectations of $45.39 billion.
In that third-quarter report, CEO Jamie Dimon struck his characteristic tone of cautious optimism mixed with realism: "While there have been some signs of a softening, particularly in job growth, the U.S. economy generally remained resilient. However, there continues to be a heightened degree of uncertainty stemming from complex geopolitical conditions, tariffs, and trade uncertainty, evaluated asset prices and the risk of sticky inflation. As always, we hope for the best, but these complex forces reinforce why we prepare the Firm for a wide range of scenarios."
Ahead of Tuesday's report, analysts have been adjusting their outlooks. Barclays analyst Jason Goldberg maintained an Overweight rating and lifted his price target from $342 to $391. Meanwhile, Truist Securities analyst John McDonald kept a Hold rating but nudged his target from $330 to $331.
Reading The Charts
The technical picture for JPMorgan is telling an interesting story right now. The stock is trading just below its 20-day simple moving average of $323.61—about 0.7% under that mark—but it's still sitting 2.2% above the 50-day SMA. That setup suggests some near-term weakness while the broader trend remains intact.
Momentum indicators are painting a neutral-to-bullish picture. The RSI sits at 59.11, firmly in neutral territory. That means the stock isn't overbought or oversold, leaving plenty of room to move higher without flashing warning signals. The MACD is above its signal line, which typically indicates bullish momentum and suggests continued upward pressure could be building, especially if the stock can climb back above that 20-day moving average.
Traders are watching key levels closely: support at $320.50 and resistance at $322.50. A break below support could signal trouble ahead, while pushing through resistance might open the door to further gains.
Zooming out, JPMorgan has posted a stellar 12-month return of 34.80%, reflecting a strong long-term trend. The stock recently touched a 52-week high of $337.25 and is currently positioned at 88.3% of its 52-week range. Being this close to the highs suggests strength, but also means traders should watch for potential pullbacks from these elevated levels.
The technical setup suggests watching for either a bounce off support or a breakout above resistance. Keeping an eye on the moving averages and momentum indicators will be crucial for anyone trying to time their next move in JPM.
At the time of writing, JPMorgan shares were trading 2.18% lower at $322.03.
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