Jabil, Inc. engages in the provision of electronic manufacturing services and solutions. It offers electronics design, production, product management, and repair services to companies in the automotive and transportation, capital equipment, consumer lifestyles and wearable technologies, computing and storage, defense and aerospace, digital home, healthcare, industrial and energy, mobility, networking and telecommunications, packaging, point of sale, and printing industries.
Take a look at the 1-year chart of Jabil (NYSE: JBL) below with the added notations…
Chart of JBL provided by TradingView
JBL has stalled at the $63 area as resistance (yellow) on multiple occasions since the beginning of the year, the most recent instance being just a few days ago. If the stock can manage to break up through that $63 zone, higher prices should be on the way.
The Tale of the Tape: JBL has an important area of resistance around $63. A long trade could be entered on a break through that zone, with a stop placed below it. However, if you are bearish on the stock, a short trade could be made on any rallies up to the $63 area.
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
Do not trade options until you watch my urgent message: