Stock Of The Day: Has The JPMorgan Reversal Started?

JPMorgan Chase & Co. (NYSE:JPM) traded higher on Wednesday, although shares have been in a downtrend so far in 2026. As you can see on the chart, a reversal may have started.

The $297 level has been support for JPMorgan since September. Sometimes, an important support or resistance level can retain its importance for a long period of time. This is called ‘market memory', and it's why JP Morgan is the Stock of the Day.

Back in September, when JPMorgan fell to $297, it reversed and rallied. When this happened, several of the investors who sold shares came to believe they had made a mistake. Some vowed to buy their shares back, but only if they could get them for the same price they were sold for.

So when they fell back to $297 in October, these remorseful sellers placed buy orders.

And then the same thing happened. The shares rallied again, and once again remorseful sellers decided to buy their shares back at their selling price if possible. When JPMorgan fell back to $297 in November, they placed buy orders and this created support.

After the stock rallied off this level, a new group of remorseful buyers formed, vowing to buy their shares back. Once again, remorseful sellers created support at the level, and another rally followed.

The bottom part of the chart shows two examples of the RSI Index. It is a tool used by traders to determine if a stock is oversold. The default time period for the RSI is the period from now to 14 periods ago. This shows the stock not to be oversold.

The lower RSI uses a 5-period time frame instead of 14. On this scale, the stock is oversold.

All momentum indicators have default settings. Successful traders know that sometimes signals are more effective if the settings of the indicators are changed and optimized.

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