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.
JBLU trade ideas
JBLU $22 PTJBLU Current Price $17.10 Price Target $22
$17C 7/16 ($52,2% till breakeven)
My thesis for JBLU is similar to BA the numbers from travel this weekend are going to give a bump to the entire travel sector. The airliners JBLU especially is down from its 52-week highs and could see a move up on the backs of strong travel data. Savings rates are still very high, the consumer has money to spend I think the trend of increased travel continues which will benefit JBLU. Technically JBLU is hovering around $16.70 support, I think JBLU holds that support and moves up $18 in the short term and moves to test the top line of resistance on current trend at $22.
Cup and HandleJBLU has been teetering for a while. The cup covers close to a year of price and is more wide than deep.
Possible stop under handle low (not far below current price) Mid cup is 14.25.
Cup and handle patterns were recognized first by William O'Neil is the 80s. Cup and handles are continuation patterns and usually develop in a bullish trend. The cup is formed during a consolidation phase with the left side known as the sell side, then a rounded bottom, and the right side is known as the buy side of the cup. The handle forms after price correction and is usually formed before a full clear break out occurs. Although sometimes price can break out a forget to form a handle (o: but as a rule will come back down eventually to form the handle.
Cups should be U shaped, not V shaped. Handles (retracement) are usually at least 25% of break out level but should not be below mid cup, or 50%. You should see expanding volume on the right side of the cup.
Targets are subjective, but many place the targets using the depth of the cup and 62 to 79% of the cup depth added to long entry level. Targets 2, if the security can make it that far and usually occurs after a pull back are often calculated at 127 to 162 percent of cup depth.
No recommendation
Jet blue airlines recommendation of the dayThe leisure airline company is a hot stock with a price as little as 19.xx dollars and a potential growth after the imminent opening of the borders on july
It is expected that leisure flying will boost airlines comapnies income after the pandemic phase and Jet blue operates flights to the places that you can expect to be full this summer.
As shown on the chart the stock price is on a ascending channel and it did hit a pandemic high of 21.xx dollars
Target price 1 : 21.65 dollars
target price 2 : 23.61 dollars
NEW POSITION $JBLU Target 22.55 for 18.37% $JBLU Target 22.55 for 18.37%
Or next add level is at 15.55
I'm looking at Airlines and Cruise Ships around here...
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On the far right of the chart is my Average (Grey) Current Target (Green), and Next Level to add (Red) Percentage to target is from my average.
I start every position with 1% of my account and build from there as needed and as possible.
I am not your financial advisor. Watch my setups first before you jump in… My trade set ups work very well and they are for my personal reference and if you decide to trade them you do so at your own risk. I will gladly answer questions to the best of my knowledge but ultimately the risk is on you. I will update targets as needed.
GL and happy trading.
Cup and HandleJBLU made it to 21.73, and price popped out of the upper bollinger band. This shows momentum but price is usually drawn back in to the bands.
Long entry level is an at or above level and hopefully is over immediate resistance. Long entry level can be subjective.
There is support at handle low and at mid cup level.
Cup depth is 15.04. Targets are calculated by taking the depth of the cup and applying fib levels to long entry level. I use 38 (.382) percent, 62 (.681) and 79 percent (.782). You can multiply the depth by these fib levels or these percentages. There are different ways to do this, and you can also add a fib table to the top of the cup.
Not a recommendation.
JetBlue To Retest 5 Year HighAs you can tell by this monthly chart. JetBlue is absolutely primed to makr the next run up and break through the 5 yr down trend that has plagued the firm. With covid restricting travel, as restrictions ease up people will only fly more, and after not being able to for a while, they will flock in large numbers. MaCD bullish cross. If we do not break the 5 yr resistance heading back down to $15 range