JetBlue Airways Between the 50 and 200Day

Published on Monday, 19 July 2010 06:28 Written by Christian Paolinetti

New York, July 19th (TradersHuddle.com) - Shares of JetBlue Airways Corporation (NASDAQ:JBLU) closed the trading session at $5.87 near its 50 day and 200 day moving averages currently set at $5.96 and $5.65 respectively. JetBlue's price action is above the 200 day moving average but below its 50 day moving average, signaling a possible break out.

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 Airways price action seems to be setting up for a tight range between the 200 day moving average as support and the 50 day moving average serving as resistance.

A tiered approach to enter the stock, appears to be the best way to maximize possible movements from the stock, as traders could enter JetBlue Airways with a small position and wait for the stock to break out above the 50 day moving average at $5.96, where traders could add to their position as momentum builds with the breakout. The flip side will be if support being referenced at the 200 day moving average set at $5.65 breaks it could mean further downside in the horizon for JetBlue Airways.