Shares of trucking and logistics company J.B. Hunt Transportation Services Inc. (JBHT) are looking vulnerable ahead of its earnings report after the close of trading Tuesday. Let's check out the charts and indicators.
The charts of JBHT looked positive back on July 9 where we recommended, "Traders could approach JBHT from the long side risking a close below $118. The $147 area is our first upside price target." Prices reached our $147 target and our $169 weekly Point and Figure target.
With the shares now trading around $200 a change in strategy is needed.
In the daily bar chart of JBHT, below, we can see that the shares are testing the cresting 50-day moving average line. The rising 200-day moving average line intersects down around $179.
The daily On-Balance-Volume (OBV) has been struggling and rolling over as prices pushed higher into the end of December. This is a bearish divergence as the bullish price action did not get confirmation from the OBV line.
The Moving Average Convergence Divergence (MACD) oscillator is pointed down and tells us that the "trend strength" has been weakening.