Banks kickstart the earnings season tomorrow

Taking a look at JPMorgan ahead of its earnings as the banks kickstart the earnings season for Q2. Its shares are trading at around $208.01 a share in the pre-market trade with the price range starting to narrow in. The company’s shares are up 23% year-to-date and up 44% over the last 12 months. We can see after taking a breather in April, the stock has managed to only eke out minor gains since with the resistance in focus now along the upper trendline. Trendline resistance is currently reading $213.40, a break above would create $220 as the next psychological resistance point. Towards the downside, the lower trendline should offer some support around $196.91. A break below this price level would not immediately indicate that a deeper sell-off is underway as there are other support levels for investors to keep an eye on. Only a move below $190.91 could create further concerns in the shorter term. Looking at the technical indicators, they sway towards the bullish bias but as the MACD is yet to turn positive, caution should remain. Fundamentals tend to have a much bigger influence on price action, so even though the momentum indicators point to potentially further upside, a disappointing earnings report should cause a decline in price. JPM is expected to report an EPS of $4.14 on revenue of $41.72bn.