Jet Blue Pitchfork Chart - Very actionable (bullish)This NASDAQ:JBLU pitchfork chart looks to be playing out well. After breaking our of a large base in the 6s Jet Blue has its eyes on higher prices.
Jblulong
JBL Bullish AssumptionsMonthly timeframe displaying bull and bear cycles
This current bull cycle could lead to fast extended gains if the assumption that the small price range has a bullish "squeezing" effect on price.
A head and shoulders pattern is within this small range
Potential Long on JetBLue JBLURecognizing multiple Technical confluences for a potential move long on JBLU
1. We see price following the trend that existed prior to Covid
2. The 100 EMA has dipped below the 200 EMA (sign price may be reversing current trend.)
3. Price has entered a significant Demand Zone
4. Price is respecting the trend lines since the Covid dip
5. The RSI is displaying possible divergence.
6. The MACD is below 30. (Sign price is oversold).
Negative Confluences:
1. OUR OBV line is showing a decline in buying volume.
2. Price is still outside the lower, longer (pre-Covid) trend zone.
Fundamental Analysis:
1. Earnings expected first week of August. (Price typically declines into earnings).
2. Earnings report for 2nd quarter includes months prior to economic opening. (Earnings may be lower.)
3. Operating Income negative year over year
4. Gross profit change from previous years same quarter show significant loss
5. Economic reports show record travel numbers from July 4th
6. Economy nearly fully opened since roughly June
7. JBLU to start flights from NY to UK in August.
JetBlue IdeaThe current fair value of the stock based on Buffets equation is just over $40 meaning there is a lot of room for the stock price to grow. Earnings was stong and price tested the new resistance of $20 and looks to be testing to make new highs currently. Looking for potential pullback or rejection of next level to enter in on a lower price.
JBLU Bullish OpportunityPE = 10.44 ; Forward PE = 8.15 (GOOD)
EP/S (t.t.m) = 1.97 ; EP/S Next Year = 2.52 (GOOD)
Book/sh = 10.04
Target Price $27
