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A Subscriber Asks: Is JetBlue Ready to Fly Higher?

Traders could go long JBLU at its current altitude.
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A Real Money subscriber asked me if JetBlue Airways (JBLU) was ready to fly higher. Let's check out the charts.  

In this daily bar chart of JBLU, below, we can see that prices have been rallying the past 11 months. Prices are trading above the 50-day and 200-day moving averages. The On-Balance-Volume (OBV) line shows a little progress from February and the Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside for a cover shorts buy signal. An outright buy signal could happen very soon.  

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In this weekly Japanese candlestick chart of JBLU, below, we can see a number of lower shadows below $19 the past three months. This tells us that traders are rejecting the lows and that the path of least resistance is more likely to be up. The 40-week moving average line and the OBV line are bullish. The MACD oscillator has crossed to a take profit sell signal.  

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In this daily Point and Figure chart of JBLU, below, we can see an upside price target in the $23-$24 area.  

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In this weekly Point and Figure chart of JBLU, below, we can see a longer-term price target in the $62-$63 area. A trade at $27 will be an upside breakout on this chart. 

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Bottom line strategy: Traders could go long JBLU at its current altitude. Risk to $17 for now. $24 and then $63 are our price targets.

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