Bulls and Bears on the Trenches of J.B. Hunt

Published on Thursday, 05 July 2012 04:30 Written by TradersHuddle Wire

New York, July 5th (TradersHuddle.com) - Shares of J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) closed the trading day lower by $0.13 or -0.22% from its previous close. J.B. Hunt's price action formed what is considered to be a doji close, where the open and close prices are very close to each other, mainly signaling an indecision between buyers and sellers.

J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) and its subsidiaries provide transportation and logistics services in North America. The company provides flatbed, refrigerated, expedited, and less-than-truckload, as well as various dry-van and intermodal solutions.

J.B. Hunt's trading range is defined by a trough, which marked calculated support at $55.78 and by a peak that set the resistance point at $59.91. These levels are closely watched by traders managing their positions.

Traders wanting to establish a position in J.B. Hunt or traders that are already holding the stock can use the doji close to their advantage, since the pattern present a short-term pause in the stock's price action. This pause results in an entry point for traders depending of which way the stock resolves this short-term indecision.

The Doji is an important candlestick pattern that provides information on their own and as components in a number of important patterns. Doji form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. Alone, doji are neutral patterns.

Any bullish or bearish bias is based on preceding price action and future confirmation. In the case of J.B. Hunt , given that the stock finished the session lower, bears should monitor the stock, as it could reverse if it manages to trade above its intraday high. Below a Doji illustration: