|By Nathan Young|
JP Morgan has been tied to negative items such as the housing crisis and been looked at as a government profit machine. The subprime-lending crisis was the icing on the cake and with that, reform was pushed and tighter regulations were lobbied. Although not much has changed, these large banks have finally recovered from 2008 recession lows. Taking a look a JP Morgan, we will get a glance into the health of this bank and see if it will continue to do well.
With JP Morgan, I want to strictly take a look at the stock price from a technical stand point in order to shed a little different angle on evaluating stock choices. If we’re taking a glance at the daily chart, we can see within the most recent trading days, there have been some gaps to the upside with high volume, indicating a trend change. Also, the have broken the $70 area of resistance with strength as well.
The stochastic indicator is showing that the stock is currently in an overbought area of the chart, but the latest movement has not indicated a slow down. I would be watching for a pull back to see if it is going to test any different areas of support or resistance, and design a trade of off those. The stock seems to be giving investors enough movement and opportunities to enter and exit the market.
Being a large bank, the obvious risk the company faces is macroeconomic issues. There are so many investments put all over the world that anything can affect the profitability of JP Morgan. Secondly, the company has to adhere to regulations across not only the United States, but also the whole world. This opens the door for risks of all kinds and needs to be taken into account before investing. Lastly, this is a different type of risk however, but they pose a risk to the retail investor and customer. In 2008, their investing practices almost destroyed the U.S. economy, which in turned lost the trust of many customers. If the company wants to succeed, they need to be sure to have the customers’ best interest in mind.
Big bank stocks are highly likely to be found within someone’s portfolio as it covers an important sector. If you’re not thrilled about owning an individual banking stock, there are ETF’s out there that cover the financial/banking sector as a whole, and eliminate the individual risks that comes with owning a company. But before investing in an asset, you should always consult a financial professional, as they will be able to guide you into your financial goals.
|This article from Macroaxis published on 02 of December contributed to the next trading period price escalation.The trading delta at closing time to the next next day price was 2.03% . The trading delta at closing time when the story was published to current price is 37.58% .|