JBLU dominated by bears dragging the market lower throughout the day
JetBlue Airways Corporation (JBLU) Technical Analysis Report for Oct 27, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, JBLU finished Tuesday at 11.88 tanking $0.68 (-5.41%) on high volume, strongly underperforming the Dow Comp. (-0.88%) following today's earnings report. Today's close at 11.88 marks the lowest recorded closing price since October 6th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 12.40, JetBlue Airways confirmed its breakout through the previous session low after trading up to $0.64 below it intraday.
Daily Candlestick Chart (JBLU as at Oct 27, 2020):
JBLU reported earnings of $-1.75 per share before today's market open. With analysts having expected an EPS of $-1.9, JetBlue Airways Corporation beat market expectations by 7.9%. The company's last earnings report was released on July 28, 2020, when JetBlue Airways Corporation reported earnings of $-2.02 per share missing market expectations by -9.8%.
Tuesday's trading range has been $0.92 (7.35%), that's far above the last trading month's daily average range of $0.52. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JBLU.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 11.76 earlier during the day, the market bounced off the key technical support level at 11.76 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on October 23rd, JBLU actually lost -6.48% on the following trading day. The stock closed back below the 200-day moving average at 12.25 for the first time since October 21st.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling could move prices lower should the market test September's nearby low at 10.93.
Among the 15 market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post strong Earnings Report" stand out. Though it is usually interpreted as neutral, it has actually shown to be bearish for JetBlue Airways. Out of 20 times, JBLU closed lower 70.00% 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 10 trading days, showing a win rate of 60.00% with an average market move of -0.66%.