JB Hunt Transport Services (JBHT) has posted a series of all-time highs since breaking out above 20-month resistance in the upper $70s last November. It peaked at $93.50 in April and sold off to the 50-day EMA, beginning a test that will enter its eighth day on Monday. The stock has bounced the last three times it reached this price level, with the upside amplifying each time.
This sets a reward target in the upper $90s, setting up a highly favorable reward/risk scenario, despite underperformance in the transportation sector and declining On Balance Volume. Tight stops need to be placed under weekly lows near $86.60 because a breakdown is likely to gather momentum. Technicals will improve when price trades above Tuesday's high and closes above $90. That should attract fresh buying interest.