JPMorgan Chase & Co. (NYSE:JPM) has had to face many regulatory hurdles in the past few years. The bank which was under scrutiny post the London Whale incident. In a recently released report released by the Senate, the firm was charged for having undue influence on the commodities market because of the sheer size it brings to the commodities market. The senate believes that even though the bank has cut down its operations due to newly imposed regulations in the commodities market it still reigns supreme in “mis-pricing” certain essential commodities like oil and gold.
The company which has been seen strong growth across all its segments as reported in the last quarterly report filed by the bank has had to set aside substantial part of its profits for contingent regulatory actions that it faces in the future. This has been seen as a huge negative for the bank by analyst and investors on the street. Though, analysts on the street believe that the broad based improvement in the US economy would help the company see higher growth numbers and would help it to overcome legal costs that it had to meet over the past couple of years.
When looking at the daily chart for JPMorgan Chase & Co. (NYSE:JPM), many analysts believe that the stock has been in an uptrend right from the time it hit an intra day low of $54.53 in September. The stock has been able to move above all important daily moving averages which are a positive sign. The momentum indicators for the stock are showing first signs of a reversal which is indicative of the shift of momentum towards the sell side. Though many still believe that the contingent legal costs for the firm are a huge cause for concern going forward.