Can JPMorgan Chase See Higher Prices?
With shares of JPMorgan Chase (NYSE:JPM) trading around $53, is JPM an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
JPMorgan Chase is a financial holding company that provides various financial services worldwide. The company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management, and private equity. Financial services companies like JPMorgan Chase are essential for well-functioning economies around the world.
Two former JPMorgan Chase have been criminally charged with covering up trading losses related to the London Whale fiasco. Federal prosecutors have charged the duo with falsifying books and records, conspiracy, fraud, and making false filings with the Securities and Exchange Commission. “This was not a tempest in a teapot, but rather a perfect storm of individual misconduct and inadequate internal controls,” one prosecuting attorney said in an SEC filling.
As companies continue to operate and economies expand, leaders like JPMorgan Chase will provide valuable products and services to help financial transactions run as smoothly as possible. As one of the better big banks, JPMorgan Chase will lead the financial sector for many years.
T = Technicals on the Stock Chart Are Strong
JPMorgan Chase stock has seen a consistent uptrend in recent times. The stock is now trading at prices not seen for more than 10 years. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, JPMorgan Chase is trading slightly above its rising key averages, which signals neutral to bullish price action in the near term.