JP Morgan Chase has been a stock on my watch list for some time due to its world class management and valuation. Recently a few technical indicators along with the fundamentals have caused me to recommend buying, and I thought I'd share my reasoning with the readers here at Seeking Alpha.
You will notice that the stock hits near 41.50 4 times over 5 months before crashing through it Dec 22 on heavy volume. Also note the successively higher lows on each dip.
It's very close to a "rising three methods" except that the final up day did not break a new high. Still, it's similar enough to warrant attention.
and they've been buying back billions of dollars of shares. They are reputedly ready to announce the reinstatement of their dividend. All of which should lead to upwards price movement. Loan quality is rising, charge offs lessening, and they have been steadily releasing reserves. Their investment bank division has even won an award for best IB recently.
Disclosure: I am long JPM.
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