JPM, C and BAC Forecasts – Banks Look Stretched Heading into Holiday

JPM Technical Analysis

JPMorgan has tried to break out during the previous Wednesday session. It does look like pre-market trading is a little bit positive for JPMorgan, but it’s worth noting that the $335 level has been resistance a couple of times, and signs of exhaustion on Thursday will probably lead to some short-selling opportunities.

This is an overbought market. This would be an overbought fade, more of a trade that would be more like a mean reversion trade. I don’t think the trend changes anytime, and I do believe that buyers of dips will be waiting below, especially somewhere near $325.

C Technical Analysis

Citibank looks like it is going to be a little positive at the open. We’ll see what it does. If it can break the high from the Wednesday session, then I think Citi will probably continue towards the $150 level. If it pulls back, I think this is a buy on the dip type of market. This has been a little bit more straightforward and steady move to the upside than JPMorgan over the last several months, if not years. So, Citi, I think, is probably my favorite bank at the moment. We’ll see whether or not we can truly take off, but it does seem to be running into a little bit of exhaustion.

Bank of America Technical Analysis

Bank of America looks like it’s going to jump right off the bat, and if it clears the $57.50 level, I think that could send Bank of America higher. A short-term pullback does make some sense, though. $55 would be an area where I would expect to see a lot of support. Keep in mind that all of these banks are, to one extent or another, overbought, and Friday is Juneteenth in the United States, so that means the stock market is closed.

Thursday could be a bit choppy, could be a bit erratic, may not go anywhere. We’ll just see how many traders have decided to take a 4-day weekend. And so all of this comes into play, but the banks certainly look like they are extended. A little bit of a pullback, depending on your time horizon, might be good for a short, or it might be a buy-the-dip type of opportunity if you’re a little longer term.

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