JPMorgan Chase Surges 3.95% on February 6, 2026 Driven by Bullish Engulfing Pattern and Moving Averages Amid Robust Volume

JPMorgan Chase (JPM) closed at $322.4 on February 6, 2026, surging 3.95% amid robust volume of 17.8 million shares. The candlestick pattern reveals a bullish engulfing formation, with the session’s high ($324.25) and low ($314.71) indicating strong buying pressure. Key support levels include the previous day’s close ($310.16) and a prior trough at $305.89 (January 30), while resistance aligns with the recent high of $316.01 (February 5). A breakdown below $310.16 could trigger a retest of the $305.89 level, whereas a breakout above $324.25 may target the $329.19–$331.90 range (January 9–January 6 highs).

Candlestick Theory

The bullish engulfing pattern, coupled with a long upper shadow on the preceding bearish session (February 5), suggests a short-term reversal from oversold conditions. The psychological level of $320.00 appears to have acted as a magnet, with price consolidating above this threshold. A failure to hold above $314.71 (February 6 low) would invalidate the immediate bullish case, potentially leading to a retest of $305.89.

Moving Average Theory

The 50-day moving average (approximately $315.00) and 200-day MA (around $305.00) are in a bullish alignment, with price currently above both. The 100-day MA (~$313.00) reinforces the intermediate uptrend. However, the 50-day MA is approaching convergence with the 100-day MA, suggesting a potential slowdown in momentum. A cross below the 50-day MA would raise concerns about trend sustainability, while a breakout above $324.25 could trigger a reacceleration toward the 200-day MA as a dynamic support.

MACD & KDJ Indicators

The MACD histogram has turned positive, with the MACD line crossing above the signal line, confirming bullish momentum. However, the KDJ stochastic oscillator (fast %K at ~85, %D at ~80) indicates overbought conditions, raising the risk of a near-term pullback. Divergence between the KDJ and price action—such as a lower high in %K despite a higher price—would strengthen bearish signals. A stochastic crossover below the 20 level could signal a short-term oversold rebound.

Bollinger Bands

Volatility has expanded, with price testing the upper Bollinger Band ($324.25) on February 6. The band’s width suggests heightened uncertainty, typical of trend continuation or exhaustion phases. A sustained close above the upper band may confirm a breakout, while a reversal below the middle band ($318.00) could indicate distribution. The lower band (~$306.00) remains a critical support level to monitor.

Volume-Price Relationship

Trading volume surged to $5.73 billion on the rally, validating the move above $320.00. However, volume has not yet exceeded the prior bearish session’s volume ($2.9 billion), which may limit the conviction of the bullish breakout. If subsequent up sessions fail to maintain elevated volume, it could signal weakening momentum and a potential reversal.

RSI

The 14-period RSI is likely above 70, confirming overbought conditions. While this does not guarantee an immediate reversal, it suggests a probable correction to the 40–50 level before resuming the uptrend. A bearish divergence (lower RSI highs despite higher price) would heighten the risk of a pullback.

Fibonacci Retracement

Key Fibonacci levels from the January 9 ($329.19) to January 22 ($297.72) decline include 61.8% at $308.00 and 78.6% at $319.00. Price has already tested the 78.6% level, which now acts as a potential pivot zone. A break above $324.25 could target the 88.6% retracement at $327.00, whereas a failure to hold $319.00 may lead to a retest of the 61.8% level.

Confluence & Divergences

The alignment of bullish engulfing candles, positive MACD, and overbought RSI suggests a high-probability scenario for a short-term consolidation or pullback. However, the strong volume and Fibonacci support at $319.00–$320.00 provide a favorable environment for a continuation. Divergence between the KDJ and price action could precede a reversal, but the current confluence favors a continuation of the uptrend.