JBHT runs into sellers again around 129.61
J.B. Hunt Transport Services Inc. (JBHT) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
JBHT finished the month 7.53% higher at 129.40 after edging higher $0.36 (0.28%) today, notably underperforming the Nasdaq 100 (1.78%). Trading up to $3.04 lower after the open, J. B. Hunt managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (JBHT as at Jul 31, 2020):
Friday's trading range has been $4.02 (3.13%), that's above the last trading month's daily average range of $3.34. 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 higher than usual for JBHT.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Takuri Line.
After trading down to 125.59 earlier during the day, the market bounced off the key technical support level at 127.22 (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 June 4th, JBHT gained 2.67% on the following trading day. After having been unable to move above 129.45 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 129.61.
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the nearby swing high at 131.67 where further buy stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for J. B. Hunt. Out of 427 times, JBHT closed higher 56.44% 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 55.97% with an average market move of 0.86%.