The no-longer upstart JetBlue Airways (JBLU) has been slipping lower since September, making new lows for the move down this month. It doesn't look like JBLU has reached its final destination yet.
In this daily chart of JBLU, above, we can see a death cross back in early January, as the 50-day moving average line fell beneath the 200-day line, giving moving-average followers a sell signal. More recently we can see that bounces in the past four months have failed at the underside of the declining 200-day moving average line.
The On-Balance-Volume (OBV) line made a peak in September and has worked lower since, telling us that sellers have been more aggressive on days when JBLU has closed lower. The lower price lows in April and May do not show a bullish divergence between the price action and the momentum study. With the trend and the momentum pointed lower, we are likely to see JBLU work lower.
This weekly chart of JBLU, above, shows a nice triple from the mid-2013 lows. Dips to the 40-week moving average were successful on the rally, and rallies to the underside of JBLU have worked since the peak. The OBV line is slowly edging lower and the MACD oscillator is firmly in the bear camp.
With most airlines weakening, we could see JBLU head lower to $15 -- and maybe even $10 -- in the months ahead. Keep your powder dry.