JP Morgan Chase Finally Patches Security Breach

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By Ben Myers

Chase ATM machine NYC
Chase ATM Branch in NYC, Oct 23, 2014

JPMorgan Chase & Co. (NYSE:JPM) reported yesterday that the entry point for the computer breach the bank faced earlier this summer has been found. According to security experts it is being said that the company could have avoided the breach if only it installed a security fix in one of the servers which are part of its vast server networks. The security breach was seen as a huge negative by analysts on the street as they believed it led to questions being raised about the credibility of the system and client monies.

The company in a recent statement said that it would be doubling its security efforts for its computer networks so that users do not have to face another such breach in the near future.  It is being reported that the absence of a two step authentication scheme was not present at one of the company servers which led to hackers being able to breach the security system and steal data. The company also stated that they are investigating this oversight and trying to plug in any such loop-holes in the system in the interim.

When looking at the daily charts for JPMorgan Chase & Co. (NYSE:JPM), the stock has found very good support at the 50 day moving average at $59.98 and has been one of the best performing stocks in the sector, this past year. The momentum indicators for the stock have given a fresh buy signal which is indicative of the shift of momentum towards the buy side. The relative strength index has also given a fresh buy signal which is a huge positive. The stock currently trades above all important daily moving averages.

Actionable Insight:

Long JPMorgan Chase & Co. (NYSE:JPM) at current levels for an intermediate target at $63 with a strict stop loss below $59.98

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