Does JPMorgan Chase Support a Move Higher?
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.
JPMorgan Chase will pay more than $900 million in fines to authorities in the U.S. and the U.K. and admit to wrongdoing to settle the London Whale trading scandal that resulted in $6 billion in losses. The agencies JPMorgan must pay are the Securities and Exchange Commission, the Office of the Comptroller of the Currency, the Federal Reserve, and London’s Financial Conduct Authority. No senior executives from JPMorgan are expected to face charges, The New York Times reports. The rare admission of wrongdoing could result in other lawsuits for JPMorgan, which formerly had a reputation of its risk management skills.
T = Technicals on the Stock Chart Are Mixed
JPMorgan Chase stock has been a strong performer in the last few years. The stock is currently trading slightly below highs for the year. 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 between its key averages, which signals neutral price action in the near-term.