JetBlue Airways ( JBLU) was downgraded to Hold Thursday by TheStreet's quantitative service. On Wall Street, a "hold" recommendation is kind of like a "sell," as we really are looking for stocks that are going to outperform. Let's take a look at the charts, indicators and boarding passes of JBLU.
In this daily bar chart of JBLU, below, we see an overall weak pattern of trading. Rallies last only about one month and declines have also lasted a month.
Many of the declines have retraced all, if not more, of the prior advance. Prices are below the declining 50-day moving average line and the declining 200-day line. The daily On-Balance-Volume (OBV) line shows a decline the past twelve months suggesting further weakness ahead as sellers have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator is in bearish territory below the zero-line.
In this weekly bar chart of JBLU, below, we can see that prices are bearish on this time frame, too. JBLU is below the declining 40-week moving average line. The OBV line is weak and the MACD oscillator just crossed to a take profits sell signal.
In this weekly Point and Figure chart of JBLU we can see the price action going back several years. There is an upside price target of $24 being shown, but a decline to $15 is likely to precipitate a much deeper decline as there appears to be little support below the market based on the volume pattern (left scale).
Bottom line strategy: JBLU does not look attractive from the long side. Think about taking another mode of transportation.
