Trading Idea: - Is JetBlue Airways close to Resistance?

Published on Monday, 11 June 2012 07:40 Written by TradersHuddle Wire

New York, June 11th (TradersHuddle.com) - Shares of JetBlue Airways Corporation (NASDAQ:JBLU) are trading very close to calculated resistance at $5.24. The stock ended the trading session at just $5.23, which is near levels that make it difficult to buy or start a position.

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 stock range is defined by its calculated support defined at $4.06 and by the resistance level at $5.24; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for JetBlue Airways. However, as the stock pulls back towards $4.06 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $5.24 then traders will get an opportunity to enter the stock as it moves to a higher range.