JPMorgan shares remain in a bull market supported by Q1 results

JPMorgan Chase & Co (NYSE: JPM) shares have advanced more than  18% since the beginning of January 2021, and the current share price stands around $151. JPMorgan reported better than expected Q1 results this week, and according to the technical analysis, shares of this bank remain in a buy zone.

Fundamental analysis: JPMorgan reported better than expected Q1 results this week

JPMorgan reported Q1 results yesterday; total revenue has increased by 14.3% Y/Y to $32.3B while Q1 GAAP EPS was $4.50 (beats by $1.38). Total revenue has increased above the expectations (+ $1.99B), and the bank reported a net income of $14.3B.

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“We saw another strong quarter; net income was an all-time record with IB fees up 57% year-on-year, reflecting continued robust activity and markets up 25% year-on-year as the environment remain favorable in January and February although it did start to normalize in March. In AWM, we had record net long-term inflows of $48 billion this quarter, and deposits of $2.2 trillion were up 36% year-on-year and 5% sequentially, as the Fed balance sheet continues to expand, said Jennifer Piepszak, Chief Financial Officer of JPMorgan.

Corporate & Investment Bank revenue advanced 46% Y/Y to $14.6B, but it is also important to mention that equity market revenue jumped 47% Y/Y with solid performance across all products. Consumer spending has recovered to pre-pandemic levels, and the management of JPMorgan believes that the economy has the potential to have extremely robust growth in the upcoming months.

This bank has proven its stability during the Covid-19 pandemic, and the first-quarter earnings results showed that JPMorgan is moving in the right direction. Steven Chubak, an analyst from Wolfe Research, said that he believes that the second-quarter results could be even better.

JPMorgan expects a successful 2021, and as more people get vaccinated, economic activities will start to recover, which is driving investor sentiment.

Technical analysis: Bulls remain in the control of price action

JPMorgan shares have advanced from $124.78 above $160 since the beginning of January, and the current price stands around $151. The important support levels are $140 and $130; $160 and $170 represent the strong resistance levels.

If the price jumps again above $160, it would be a signal to buy JPMorgan shares, and the next target could be around $165 or even 170. On the other side, if the price falls below the $140 support level, it would be a firm “sell” signal, and we have the open way to $130 support.

Summary

JPMorgan reported better than expected Q1 results this week, and according to the technical analysis, shares of this bank remain in a buy zone. If the price jumps again above $160, it would be a signal to buy JPMorgan shares, and the next target could be around $165 or even 170.