JBHT tumbles, losing $4.16 (-3.64%) within a single day
J.B. Hunt Transport Services Inc. (JBHT) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
JBHT ended the week -2.18% lower at 110.07 after tanking $4.16 (-3.64%) today, significantly underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day loss in over four weeks. The last time we've seen such an unusually strong single-day loss on January 31st, JBHT actually gained 2.33% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 112.73, the stock confirmed its breakout through the previous session low after trading up to $2.78 below it intraday.
Daily Candlestick Chart (JBHT as at Feb 14, 2020):
Friday's trading range has been $4.34 (3.8%), that's far above the last trading month's daily average range of $3.02. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for JBHT.
Notwithstanding a strong opening J. B. Hunt closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
The market closed back below the 20-day moving average at 112.97. After having been unable to move above 114.71 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 114.29.
Although JBHT is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
With prices trading close to this year's low at 107.52, downside momentum might accelerate should the stock break out to new lows for the year. As prices are trading close to February's low at 107.80, downside momentum could speed up should J. B. Hunt mark new lows for the month.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for J. B. Hunt. Out of 270 times, JBHT closed higher 52.96% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.78% with an average market move of 0.98%.