Wave 3 completion signals shift

Technical analysis suggests JPM's wave 3 has finished based on Fibonacci levels. The stock may now be entering a corrective phase rather than continuing its uptrend.

“I believe wave 3 is done based on common fib levels and we are in a corrective phase.”

Two correction scenarios ahead

The key question is whether the pullback will be mild or moderate. A deeper correction would signal different trading opportunities than a shallow one.

“Question is it a mild or moderate correction?”

Bullish candle complicates outlook

A three-day bullish candle suggests strength, making the analyst hesitant to enter long positions until the correction plays out more clearly.

Wait for clearer pullback signal

The trader won't take a long position unless the stock pulls back deeper from current levels, confirming the correction is underway.

“If it doesn't pull back deeper from here, I'm not interested to taking a long”

Flexible strategy if thesis fails

If the expected correction doesn't materialize, the analyst will simply move on to analyze other charts rather than force a trade.

“If it doesn't play out, then we just look at other charts.”