JetBlue Airways Corp. provides air transportation services. It carries more than 30 million customers a year to 86 cities in the U.S., Caribbean, and Latin America with an average of 850 daily flights. The firm offers flights and tickets to more than 82 destinations, with accommodations such as free TV, free snacks, and most legroom.
Take a look at the 1-year chart of JetBlue (NASDAQ: JBLU) below with the added notations…
Chart of JBLU provided by TradingView
JBLU has formed key resistance at around $15 (red) over the past several weeks. In addition, the stock is also rising on top of an up-trending support line (green). These two lines have JBLU trading within a common pattern known as an ascending triangle. Eventually, the stock will break out of it.
The Tale of the Tape: JBLU has formed a triangle pattern. A short trade could be made on a break of support or on a test of resistance. A long trade could be made at support or on a break through the triangle resistance.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
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