JBHT unable to break through key resistance level
J.B. Hunt Transport Services Inc. (JBHT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, JBHT ended the month 0.56% higher at 120.34 after edging higher $0.26 (0.22%) today, significantly underperforming the Nasdaq 100 (1.96%). Today's close at 120.34 marks the highest recorded closing price since June 8th. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (JBHT as at Jun 30, 2020):
Tuesday's trading range has been $1.89 (1.58%), that's far below the last trading month's daily average range of $3.09. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for JBHT.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Bullish Spinning Top showed up on June 22nd, JBHT gained 2.32% on the following trading day.
Unable to break through the key technical resistance level at 120.73 (R1), J. B. Hunt closed below it after spiking up to 121.24 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move above 121.12 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 121.24.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 122.39, upside momentum could speed up should the share be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for J. B. Hunt. Out of 450 times, JBHT closed lower 55.11% 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 six trading days, showing a win rate of 49.78% with an average market move of 0.11%.