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JPMorgan’s Target Boosted on Even Better Technicals

JPM under heavy accumulation with support from new buy signal, positive momentum


JPMorgan Chase (JPM) — This global financial services company has assets of nearly $2.5 trillion and operates in over 50 countries. Although earnings for 2013 fell to $4.35 per share versus $5.20 the year before, S&P has increased its estimate for 2014 to $6.04 from $5.96. And it estimates 2015 earnings will increase to $6.40.

Increased earnings are expected to result from an expanding capital markets business that should benefit from a European recovery, a strong asset management business, and expanding income from its U.S. branch network. S&P said it anticipates JPM will increase its share-repurchase program and quarterly dividend, which currently stands at $0.38, for a 2.7% yield. Its analysts have a 12-month fundamental price target of $65.

Technically, JPM broke from a consolidation in May to form a new bull channel. The 200-day moving average and the support line of the bull channel continue to frame the price structure.

Buying volume increased in November and December, and the stock broke to a new high. But profit-taking and a difficult month for stocks in January drove it to support, where it reversed.

I last recommended JPM on Feb. 14, with the stock near $58, and now at roughly the same price, I wish to reiterate that recommendation. JPM is under heavy accumulation. And with support from a new MACD buy signal and positive momentum, I’m raising my trading objective to $64 from $62, with a longer-term objective of $70, up from $65.

JPM Chart
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Article printed from InvestorPlace Media, http://investorplace.com/2014/03/trade-day-jpmorgan-chase-jpm-3/.

©2017 InvestorPlace Media, LLC