The regional banking crisis is wreaking havoc on the investment world. While the major selling has been tied to that subset of the financial sector, it’s not like the big banks have been immune.
Investors have seen notable selloffs in JPMorgan (JPM) and Bank of America (BAC), while much more significant declines are taking place in other parts of the banking industry.
Wells Fargo (WFC) has taken it on the chin, while Charles Schwab (SCHW) was down 23.3% at one point on Monday. First Republic (FRC) is getting crushed today too, down over 60% at last check.
DON'T MISS: Crisis in Regional Banks Brews. Here's What a Key Chart Says Now.
All of this stems from the failures we’ve seen in SVB Financial (SIVB) and Signature Bank (SBNY).
Of course, it could be much worse for JPMorgan and its peers, but given the chaos in the space, I wanted to revisit the charts.
Trading JPMorgan Stock
Chart courtesy of TrendSpider.com
JPMorgan stock topped out on Monday, fell in four straight sessions and bottomed on Friday. In that span, it fell 11.25%. Ordinarily, that’s a big four-day selloff!
On the flip side, it’s holding up pretty well compared to many counterparts within the space. For instance, the Financial Select Sector SPDR Fund (XLF) is down about 3% at last check. From last Monday’s high to this morning’s low, the ETF was down 13.5%.
For JPMorgan stock, shares found support at the 200-week moving average and 38.2% retracement, as shown above.
On a rebound, let’s see if shares can clear $135 and the 10-day moving average just above it.
If it can, $140 is in play as the stock will run into the 21-day and 50-day moving averages. Back above these marks and the highs near $144 are on the table.
On the downside, a close below last week’s low at $127.82 opens the door down to $125, where JPMorgan stock finds the 200-day moving average and weekly VWAP.
Just below that and the 50% retracement is in play near $122.50.
Trading Bank of America Stock
Chart courtesy of TrendSpider.com
At one point on Monday, Bank of America stock was down 7.9%. From last week’s high to this week’s low, shares were down more than 19%, but the pain started before the regional banking issue.
BofA shares have quietly declined in five straight weeks.
So far though, shares continue to find support near $29.50. The 61.8% retracement comes into play just above this mark, at $30.24.
Trading just below this $29.50 to $30.25 zone now and bulls will want to see the stock regain this area. If it can do so, we could get a further bounce in Bank of America.
In that scenario, keep an eye on the $33.50 to $34.50 zone. There the stock runs into several key retracements of the current range, as well as the 10-week, 21-week, 50-week and 200-week moving averages.
On the downside, a break of Monday’s low (at $27.87) opens the door down to the $24.50 to $25 zone. There, investors will find the 78.6% retracement of the entire post-covid rally, the gap-fill near $25 and the 200-month moving average.
