Despite the good results, Wall Street had a mixed close

April 15, 2021 14:00

Despite Coinbase’s IPO being the star of Wall Street, with a 30% rise that led it to close at $328.28 per share, the market was also awaiting the financial quarterly results of 3 financial giants: JP Morgan Chase, Wells Fargo, and Goldman Sachs.

These results were especially positive, giving hope to this sector despite the current low interest rate policies due to the crisis caused by Covid-19, although the closing was notably uneven.

 

JP Morgan Chase Analysis 

JP Morgan is the largest bank in the United States, and presented very positive results despite having allocated more than 5 billion dollars in provisions to cover possible loan defaults.

Specifically, it announced earnings per share of $4.5 and income of $33.1 billion compared to $3.06 per share and $30.46 billion expected by the market consensus.

Technically speaking, we can see that after breaking the triangle that was formed after the strong falls at the beginning of the pandemic, the price has followed a strong upward trend until reaching a maximum of $ 161.68 last March, although in recent weeks it has been following a strong lateral range around its 18-session moving average.

Despite yesterday’s good results, the price fell 1.89%, thus looking for the lower zone of the lateral channel. It is important that we analyze the price behaviour in the coming sessions since a break of the lower band of the channel could open the doors to a further decline and we cannot wait for a new upward momentum until it surpasses its current resistance level and the previous highs.

Source: Admiral Markets MetaTrader 5. JP Morgan daily chart. Data range: from December 19, 2019 to April 15, 2021. Prepared on April 15, 2021 at 12:10 CEST. Keep in mind that past returns do not guarantee future returns.

Price evolution in the last 5 years:

  • 2020: -8.85%
  • 2019: 42.80%
  • 2018: -8.72%
  • 2017: 23.93%
  • 2016: 30.68%

 

Wells Fargo Analysis

Wells Fargo also announced positive quarterly results, of $1.05 per share with an income of $18.06 billion, compared to $0.6938 and $17.49 billion expected.

Technically speaking, these good results can give hope to continue its bullish channel that began at the end of last October. Although the trend seems clear after successively supporting the price in its 18-session average and surpassing its 200-session average, the price is still at levels prior to the start of the pandemic.

After its results, yesterday it rose by 5.61% so the feeling remains positive as long as the price does not break down the current bullish channel.

Source: Admiral Markets MetaTrader 5. Wells Fargo daily chart. Data range: from November 25, 2019 to April 15, 2021. Prepared on April 15, 2021 at 12:20 CEST. Keep in mind that past returns do not guarantee future returns.

Price evolution in the last 5 years:

  • 2020: -43.90%
  • 2019: 16.75%
  • 2018: -24.05%
  • 2017: 10.09%
  • 2016: 1.38%

 

Goldman Sachs Analysis

Finally, Goldman Sachs announced positive quarterly results also exceeding market expectations, by reaching an earnings per share of $18.6 with strong revenue of $17.7 billion versus the expected $10.1 and $12.7 billion.

Technically speaking, during the trading session yesterday, the price rose 2.43%, thus continuing the rebound and again exceeding its 18 session average. Observing the graph, we can see how the price has experienced a strong upward trend in recent months after exceeding the strong lateral range that occurred during the months of May and November of last year, which has led it to mark maximums at 356.74 dollars per share last March, where a small correction began due to the accumulated overbought during the final section and beginning of this year and the bearish divergence observed in its MACD indicator.

As long as the price maintains its current support levels (red) the feeling will continue to be bullish. Losing this level may open the door to a further correction.

Source: Admiral Markets MetaTrader 5. Goldman Sachs daily chart. Data range: from December 17, 2019 to April 15, 2021. Prepared on April 15, 2021 at 12:30 CEST. Keep in mind that past returns do not guarantee future returns.

Price evolution in the last 5 years:

  • 2020: 14.69%
  • 2019: 37.64%
  • 2018: -34.43%
  • 2017: 6.39%
  • 2016: 32.86%

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  4. The Analysis is prepared by an independent analyst, Roberto Rojas (analyst), (hereinafter “Author”) based on their personal estimations.
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Source: https://admiralmarkets.com/analytics/traders-blog/results-goldman-jpmorgan

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