As the financial sector breaks out of the range that it has been trading in for most of the year and bank stocks reach their highest level since 2007, technical analyst Rich Ross of Evercore ISI gives JPMorgan Chase & Co. (JPM) a big nod of approval.

Sitting on a huge base of structural price support, the stock has recently jumped upward in a way consistent with a continuation pattern that Ross calls a bull-flag. JPMorgan’s stock price is set to hit $120, Ross told CNBC on Wednesday.

That price target would be a nearly 15% rise from Thursday’s closing price of $104.52, which is already up 21% year to date, and up 6% since the start of this week. Other big banks are also riding higher this week: Bank of America Corp. (BAC) is up about 6% since the start of trading on Monday; Citigroup Inc. (C), Morgan Stanley (MS), and Goldman Sachs Group Inc. (GS) are all up 5%.

The Financial Select Sector SPDR ETF (XLF) is up about 5% this week as it pushes past levels not seen since October 2007, according to CNBC. (To read more, see: The 4 Most Promising ETFs in 2017.)

XLF Chart

Getting Technical on JPM

The technical case for JPMorgan is based on a chart that goes back more than 15 years. Over that 15-year period, Ross points to two bottoms, one of which occurred in October 2002 and the other in March 2009. Together they form a double bottom pattern, which is interpreted by technical analysts as providing a price support level. For Ross, it just reinforces a broader structural base of support for JPMorgan’s stock.

Recently, however, the stock has found upward price momentum that appears to be forming a bull-flag pattern. The initial rise in the stock’s price from its support level forms the pole of the flag, with the sideways price move that follows signaling a period of consolidation and forming the shape of a flag. At some point, the price breaks out of the consolidating flag period and continues on its upward trend. For Ross, that upward trend will continue at least until the price hits $120.

JPM Chart

Don’t Forget the Fundamentals

From a fundamental analysis perspective, JPMorgan also looks good. Despite suffering with the rest of the big banks from low market volatility that is translating into weak trading revenues, JPMorgan outperformed analysts’ expectations in the most recent quarter. The bank’s commercial banking division and advisory business brought in record quarterly revenues, and its wealth management division earned a record of $674 million in net income. (To read more, see: Why JPMorgan, Bank of America, Citigroup can Rise 10%).

Another upside for the bank, as well as the financial sector as a whole, are recent comments made by incoming Federal Reserve chairman Jerome Powell. He suggested the possibility of relaxing some of the regulations on banks, according to CNBC.

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