Jet Blue Corp: Opportunity for long positions with trend

03.8.2017
JBLU.US D1

Our expectations: The price is in the long-term upward trend and retrace to $14.50, then forming a new upward channel and crossing 50% Fibonacci correction of the corrective movement. This gives us reason to believe that the long-term upward trend will continue.

Alternative scenarios: If the price goes back under diagonal and horizontal supports, the positive scenarios will be spoiled and we will probably see a deeper downward correction.

Comment: Long-term upward trend, correction to levels around $ 14.50 with a subsequent breakthrough of 50% Fibonacci Correction on retracement movement - End of Correction. The presence of a diagonal break with a subsequent test and pullback of the price - a positive signal. The price is at 50% correction of the last upward wave - a key level of support, positive for the price. 50 and 200 SMA are in a bullish formation.

Price Action - Engulfing bullish bar at support levels.

JetBlue is a service company operating on the domestic US market. On the chart below, we can see a comparison of the company's cost with the ETF's track record of US service sector developments.

It turns out that the yield of the share (in purple on the chart) is lower than that of the sector, which means that the company is cheap and suitable for purchase at the moment.

On financial side, company is doing well by registering positive results from 2009 until now. The company's earnings forecasts are set to increase over the next year.

On the other hand, the debt of the company declined progressively over the years, which in turn helped increase the company's net revenues.

EPS of the company is currently at a lower level but by the end of the year this will be corrected and the expectations are that it will grow slightly compared to the current levels.

SL: 21.03

Jr Trader Petar Milanov

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