JBHT closes within previous day's range
J.B. Hunt Transport Services Inc. (JBHT) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
JBHT ended the week 0.9% higher at 115.71 after losing $0.79 (-0.68%) today, but still slightly outperforming the Nasdaq 100 (-0.82%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (JBHT as at Jan 24, 2020):
Friday's trading range has been $2.95 (2.52%), that's slightly above the last trading month's daily average range of $2.38. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JBHT. Prices continued to consolidate within a tight trading range between 113.63 and 116.95 where it has been caught now for the last three trading days.
After trading down to 114.00 earlier during the day, the share bounced off the key technical support level at 114.54 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on January 6th, JBHT gained 2.30% on the following trading day. J. B. Hunt closed back below the 50-day moving average at 115.97. The stock found buyers again today around 114.00 for the third trading day in a row after having found demand at 113.91 in the prior session and at 113.63 two days ago.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might accelerate should prices move below the nearby swing low at 113.63 where further sell stops could get triggered. With prices trading close to this year's low at 111.22, downside momentum might speed up should the market break out to new lows for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. Its common bearish interpretation has been confirmed for J. B. Hunt. Out of 98 times, JBHT closed lower 60.20% of the time on the next trading day after the market condition occurred.