02/14/00 JP Morgan (JPM)
Points to watch: JP
Morgan's early January rally attempt was stopped dead in its tracks at the
stock's 200-day moving average. after a failed attempt to cross
above the 200-day M.A., the stock reversed and now appears headed for a
retest of the October lows.
On
Friday JPM failed to hold strong support at 114-115.5, a level which had
acted as support on January 5th. This support range also provided
support in August 1998 and acted as resistance in January 1999, February
1999, and November 1998. 114 is also the bottom of the gap down move
on 8/27/98.
JPM dropped 1.37
on Friday to close at 112.63. A short-term sell signal was given
with the failure to hold the 114 support area. The next downside
support is at the 10/15/99 low of 104.68. A long-term sell signal
would be given on a failure to hold the October lows, with a quick trip to
the next support at 98 then likely.
