Trading Idea - Is JetBlue Airways close to Resistance?

Published on Thursday, 12 January 2012 07:40 Written by TradersHuddle Staff

New York, January 12th (TradersHuddle.com) - Shares of JetBlue Airways Corporation (NASDAQ:JBLU) are trading very close to calculated resistance at $5.93 with the current price action closing at just $5.68 placing the stock near levels that make it difficult to buy.

JetBlue Airways Corporation (NASDAQ:JBLU) provides nonstop passenger flight service.The airline is based in New York and uses John F. Kennedy Airport as its main hub. The company flies to various international destinations and in the United States.

JetBlue's current stock range is defined by current calculated support defined at $5.04 and by the resistance level at $5.93, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for JetBlue Airways, as the stock is well above support, however, as the stock pulls back towards $5.04 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $5.93 then traders will get an opportunity to enter JetBlue Airways stock by establishing a position as the stock moves to a higher range.