Playing the Setup in JetBlue Airways

Published on Tuesday, 05 June 2012 06:48 Written by TradersHuddle Wire

New York, June 5th (TradersHuddle.com) - JetBlue Airways Corporation (NASDAQ:JBLU) closed the trading day at $4.93, near its 50 day and 200 day moving averages currently set at $4.75 and $4.77 respectively. JetBlue's price action placed the stock above these important levels, which could translate into a trading opportunity.

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.

Although, the price is above important moving averages, it's important to highlight that this is not a prime setup for buying the dip strategy, as the 50 day moving average is currently below the 200 day moving average.

The peaks and troughs algorithm shows calculated support at $4.06 and resistance at $5.24. These levels should also be evaluated by traders when planning their next move, as they provide an insight into the latest price action.

If traders want to establish a long position in JetBlue Airways, it will certainly be better to wait, given that the stock is technically broken with the 50 day moving average trading below the 200 day moving average. Traders can also look at the current range defined by the peaks and troughs to establish a short trade versus those levels.