JPMorgan Chase & Co. (NYSE:JPM) gave a breakout in yesterday’s trading session on the back of good volumes which is being seen as a huge positive for the stock by traders and investors. With the US economic growth on track, banks like JPMorgan would see huge returns for itself both on the retail and the institutional level.
Nomura Bank upgraded JPMorgan stock to buy from neutral thanks to the bank’s risk-weighted assets. Analyst of Nomura upgrade his share price target to $69 -14% above current price. Second quarter results published on July 15th showed good growth as the company took a one time hit on the back of legal costs, which look positive indicator as investors do not have to worry about any such contingent liabilities in the future. On the daily charts JPMorgan stock currently trades above both of its important daily moving averages which is a bullish sign.
The stock has been in a strong uptrend forming higher highs and higher lows indicative of buying interest for the stock every time it enters into a corrective phase. The price volume breakout in yesterdays’ session shows many traders and investors believe that the stock can go to levels of $62 in the near term. The nearest support for the stock is near the $57.60 level which is also the 100 day moving average.
The momentum indicator for the stock is in bullish territory and showing no signs of a reversal. Similarly, the relative strength index for the stock has given a fresh buy signal indicative of the strong buying momentum. Actionable Insight: Long JPMorgan Chase & Co. (NYSE:JPM) at current levels with a strict stop loss at $58.50 for a near term target at $62.