JetBlue Airways Corp. (JBLU) has roared back to life in recent weeks, doubling in price since the middle of May. The shares have performed more like a helicopter than an airplane. Jim Cramer talked about JetBlue along with other airline stocks on Real Money Monday.
Let's check out the charts of JBLU to see if air traffic control or any stock traders need to pay attention to any chart points.
In this daily bar chart of JBLU, below, we can see that prices lost about two-thirds of their value from February to around the middle of March. So much worse than losing your luggage. Prices rebounded in late March and then made a quick and successful retest of the March low in early April. The shares traded sideways for a few weeks but fresh strength can be seen from the middle of May. Prices doubled and touched the underside of the declining 40-week moving average line.
Trading volume has been heavy, which tells me we are seeing a lot of new buyers. If they are institutional buyers I am not worried but if they are smaller retail buyers we could see a correction in the days ahead. The On-Balance-Volume (OBV) has been strong and that is bullish as it both confirms the price gains but tells us that buyers are more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and that, too, is bullish.