J.B. Hunt Transport Services (JBHT) has been under pressure for several months. After making a double-top-like pattern in December and February prices started a decline back to major support. Unfortunately, an area of support is not a strong vote for go long.
In this daily bar chart of JBHT, below, we can see how prices topped out around $100 and then broke down below the January low. Prices broke decisively below the 50-day moving average line in early February and then the slope of that average turned negative. In April, the rising 200-day moving average line was broken and this month we saw a dead cross of the 50-day and 200-day averages.
The daily On-Balance-Volume (OBV) also made a double top of its own in December and early February even though prices moved higher during the month. The declining OBV line tells us that sellers of JBHT have been more aggressive with heavier volume being traded on days when the stock has closed lower. In the bottom panel, the 12-momentum study is showing a bullish divergence in March and May as the decline has slowed a little this spring.
In this weekly chart of JBHT, below, we are not getting any bullish technical clues. Prices are below the cresting 40-week moving average line. Prices are pushing down into the $85-$76 area, which should provide some support. Support does not have to materialize just because the zone worked before. As a "rule of thumb" I have found that if a stock declines more than halfway though a support area it is likely to fall all the way through.
The weekly OBV line has been weak the past four months and the Moving Average Convergence Divergence (MACD) oscillator is crossing the zero line for an outright sell signal on this timeframe.
Bottom line: Check those big mirrors on the sides and don't think about backing the truck up to be a buyer as we find little reason right now to be a buyer of JBHT.