Technical Analysis of Financial Markets

Tuesday, November 14, 2006

JetBlue Airways Corp. - (JBLU)

JetBlue has completed a Double Bottom formation reversing a 32-month downtrend which saw stock price decline some 122% in that period. A usual price target for a Double Bottom formation can be measured by taking the height of the Double Bottom 'W' pattern and projecting it upwards; - a price target of around $16.75. However, RSI is indicating that conditions are currently overbought; possible pullback towards supports at ~$13 and ~$12.15 before resumption of the trend. Barron's interviewed Richard Arvedlund, founder of Cypress Capital Management who picks JetBlue believing it stands to profit from falling oil prices and rates:

No comments: