JPM confirmation

Yesturday I updated my JPM play with a chart and a little more detail on the important levels. Recall the $34 support level. It was breached but on very light volume. I consider this to just be a shake out as it returned to the $34 support level on solid volume before the end of the trading day. This morning JPM has seen a nice move off of this support level to $35. Intraday it looks to be putting in new support at $35. See the chart below.

On the next chart looking at the 10 day 1 hour chart JPM is putting in a bull flag. This could set up for a nice move higher. On the chart it looks like it could lead to a point and a half gain from $35 to $36.5 ish.

JPM Play

Until my recent conversation with Jason the other day, I will admit that JPM was not on my radar. I have actually steered clear of the financials for some time. But I have today made a play on JPM. I sold 10 put contracts at the $30 strike for $.36 with Jun 09 expiry. Looking at the chart JPM has put in support at the $34 level with the next level at $32. I will re-evaluate this position if it breaches $33. But with 17 days until experation I feel confident with this play.

Update: So As the day progressed today JPM entered into a intraday downtrend around 12:00 Eastern time on the chart. But take note of the light volume, and it was not until the 20 minutes into the last hour of trading that it breached support at the $34 level to trade all the way down to $33.65. The second half hour of trading was more important, as you look at the chart towards the end of the day, take note of the increase in volume to bring JPM back to its $34 support level. Lastly and I think this is important look at the last volume bar where JPM traded almost 3MM shares around $34, so there are obvious buyers at this level.