JBHT closes higher for the 3rd day in a row
J.B. Hunt Transport Services Inc. (JBHT) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, JBHT finished Thursday at 93.73 gaining $2.11 (2.3%), strongly underperforming the Nasdaq 100 (5.72%). Today's close at 93.73 marks the highest recorded closing price since March 4th. Trading up to $2.64 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. 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 Mar 26, 2020):
Thursday's trading range has been $5.93 (6.47%), that's slightly above the last trading month's daily average range of $5.64. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for JBHT.
Buyers managed to take out the key technical resistance level at 93.01 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 98.15 (R1). After having been unable to move above 94.91 in the prior session, J. B. Hunt ran into sellers again around the same price level today, failing to move higher than 94.93. The last time this happened on March 20th, JBHT lost -1.97% on the following trading day.
While the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
As prices are trading close to March's high at 98.15, upside momentum could speed up should the share mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for J. B. Hunt. Out of 249 times, JBHT closed lower 51.41% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after two trading days, showing a win rate of 51.81% with an average market move of -0.08%.