JP Morgan Chase shares gain the most in 12 weeks on Friday, company obtains corporate bond underwriting license in China

According to a February 6th statement, JP Morgan Chase & Co (JPM) has obtained a license, enabling it to underwrite corporate bonds in the Chinese interbank bond market. The license was received from the National Association of Financial Market Institutional Investors (NAFMII), the regulatory authority in charge of Chinas interbank bond market oversight. This way JP Morgan became the first bank having its headquarters located in the United States to be engaged in Chinese corporate bond underwriting.

JP Morgan Chase shares registered their largest daily surge since November 14th during Fridays session. The stock went up 3.06% ($2.59) to $87.18, after touching a daily high at $87.31, or a level not seen since January 13th ($88.17). In the week ended on February 5th the shares of the financial group added 0.29% to their market value compared to a week ago, which marked a second consecutive period of gains, but yet, the smallest one in at least a year. The stock has extended its advance to 3.01% so far during the current month, following a 1.92% drop in January. The latter has been the first monthly retreat since last September. For the entire 2016, the shares of the DJIA-included financial holding company gained 30.68%.

Under the license, JP Morgan will be allowed to underwrite debt-related instruments issued by companies operating outside the financial industry. These instruments include commercial papers, medium-term notes and others which have been approved by the regulatory authority.

Chinese bond market is the third largest worldwide with CNY 43.7 trillion ($6.37 trillion) outstanding as of the end of 2016. Additionally, the interbank bond market comprised more than 90%, figures by China Central Depository & Clearing Co showed.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the JP Morgan Chase stock are presented as follows:

R1 – $87.31
R2 – $87.44
R3 (Range Resistance – Sell) – $87.58
R4 (Long Breakout) – $87.97
R5 (Breakout Target 1) – $88.43
R6 (Breakout Target 2) – $88.64

S1 – $87.05
S2 – $86.92
S3 (Range Support – Buy) – $86.78
S4 (Short Breakout) – $86.39
S5 (Breakout Target 1) – $85.93
S6 (Breakout Target 2) – $85.72

By using the traditional method of calculation, the weekly levels of importance for JP Morgan Chase & Co (JPM) are presented as follows:

Central Pivot Point – $86.19
R1 – $88.30
R2 – $89.41
R3 – $91.52
R4 – $93.62

S1 – $85.08
S2 – $82.97
S3 – $81.86
S4 – $80.74