Jack in the Box (JACK) has been trying to stabilize itself. In light of the downside price gap in February, it almost has me convinced.
Let's order up some of the latest charts and indicators.
In this daily chart of JACK, above, we can see prices have crept higher after a late-February gap to the downside. Volume has been relatively light compared to the heavy volume on the day of the gap. The On-Balance-Volume (OBV) line shows only moderate improvement in the past month. The trend-following Moving Average Convergence Divergence (MACD) oscillator gave a cover-shorts buy signal in early March and it is close to moving above the zero line for an outright go-long signal.
This weekly chart of JACK, above, shows more bullish signals than the daily chart. Prices have improved enough on this chart to close above the rising 40-week moving average line. The weekly OBV line has been strong since March 2016 and it recently made a new high ahead of the price action. The MACD oscillator is narrowing toward a possible new buy signal above the zero line.
Bottom line: JACK needs to close above the declining 50-day moving average line and it has a couple of months of resistance above the $105 area, but it looks it can work higher. Traders should risk a close below $95 on new or existing long positions.