Take JPMorgan’s Bullish Technicals to the Bank

by Sam Collins | February 14, 2014 1:02 am

JPMorgan Chase (JPM[1]) — This global financial services company has assets of nearly $2.5 trillion and operates in over 50 countries. Earnings in 2013 fell to $4.39 per share versus $5.22 in 2012. But S&P has increased its earnings estimate for 2014 to $6.04 from $5.96, and it projects $6.40 for 2015. 

The bank’s earnings are expected to increase 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, which has a 12-month fundamental target of $65, expects JPM to increase its common-stock dividend and share-repurchase plan in March. The current annual dividend is $1.52 per share for a 2.6% yield.

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. 

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

JPM is under heavy accumulation, and with support from a new MACD buy signal, it has a trading target of $62 and a longer-term objective of $65.

JPM Chart
Click to Enlarge

Chart Key[2]

  1. JPM: http://studio-5.financialcontent.com/investplace/quote?Symbol=JPM
  2. [Image]: https://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: https://investorplace.com/2014/02/trade-day-jpmorgan-chase-jpm-2/
Short URL: http://invstplc.com/1gAQjyR