Jacobs Engineering Group (JEC) has reversed direction from a downtrend to an uptrend over the past three months. Prices are close to a test and maybe a breakout over their late 2016 highs. Strength could carry to the low $80s, which is a nice move from here. Let's drill down through the charts and indicators.
In this daily bar chart of JEC, below, we can see a basing pattern from March through July with a slight new low made in August. Prices reversed direction in late August and then broke out over the highs of April through August. In September, JEC closed above the rising 50-day moving average line and the flattish 200-day line. A bullish golden cross of these averages can be seen in October.
The daily On-Balance-Volume (OBV) line declined until August and then started to rise. The Moving Average Convergence Divergence (MACD) oscillator was below the zero line for much of the past 12 months, but that changed in early August.
In this weekly bar chart of JEC, below, we can see the price weakness on the daily chart (above) was really just a pullback within a larger uptrend. Prices are above the flat 40-week moving average line. The weak daily OBV line does not look so bearish on this weekly chart. The weekly MACD oscillator is above the zero line and rising on this timeframe.
In this Point and Figure chart of JEC, below, below, we can see a sharp rally. There is a potential price target of $83.54 shown and a trade at $62.88 will be a fresh breakout.
Bottom line: Traders can go long JEC at current levels, risking a close below $57 targeting the low $80s.