JetBlue Airways Corporation (NASDAQ:JBLU) fell by -0.93% in Thursday’s trading session from $20.53 to $20.34. The price has been moving in both directions for this period, and there has been a 9.89% gain over 10-day period. There was a decrease in both volume and price. This is usually interpreted as a good sign as traders widely believe falling stock should see declining volume. Traded activity experienced a fall of -4.90 million shares and in total 7.43 M shares exchanged hands for about $151.10 million.
Inside JBLU’s Recent Trend
JetBlue Airways Corporation (JBLU) lies the upper part of a wide and falling trend in the short term, and this will normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break down through the support point at $20.46 will initially suggest a lower tendency for declines in the price and this might very well be an early sign that a trend shift is coming. Short-term traders are anticipated to see a retreat of -18.67% over the course of a quarter and, with 90% chance the price will be floating in the range of $13.35 and $16.64 in this timeframe.
JetBlue Airways Corporation Technical Signals
JBLU has witnessed its long term and short term MA triggering a buy signal. Many traders watch for short-term averages to cross above long-term averages to signal the beginning of a uptrend. Upon corrections, the price will meet support from the averages between $19.84 and $19.30. A break down through these support points will trigger sell signals. Some other technical concerns emerged as well, putting in risk the future growth of the stock in the next couple of days. Its pivot point high generated sell signal on Wednesday October 11, 2017, which calls for additional declines until the stock forms a new pivot point low, as this could be a buying opportunity. The downbeat movement of both volume and price during the recent session is interpreted as a good sign because traders usually believe falling stock should see declining volume.
JetBlue Airways Corporation (NASDAQ:JBLU) Support And Resistance Levels
JetBlue Airways Corporation (JBLU) recorded volume accumulation so there will probably be a surplus of buyers at $19.82. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $20.53, $22.07 and $22.13.
Accumulated volume is going to prevent the price from rising further at $20.53 and this action will lead the price to take a temporary pause or stay muted for a few days.
JetBlue Airways Corporation (JBLU) Risk Assessment
The number of shares changed hands in the stock is good, indicating the interest and low risk associated with it. In the most recent session, the stock price hovered around $0.30 (1.48%) between intraday high and intraday low. Each day in the past 1 week, the average volatility remained at 2.21%.
The stock is in overbought condition based on RSI(14) readings and sits at the top end of the trend. In general, this will advocate a great exit point for short term investors, but in some cases it takes more time for the trend to shift while the stock is being overbought and the Relative Strength Index keeps going higher. Regardless, the high RSI together with the trendposition increases the risk and higher daily movements (volatility) should be expected. The stock correction is due. The decline may accelerate to the downside in the near term but it is reasonable to consider what the key support levels may be that would support a bounce back to the upside for stock.