1/27/2023
Even the bad ones like JetBlue Airways Corp. (JBLU)…
You could say they’ve been… “flying.”
Let’s keep the focus here on the upper chart as we’ll get to the lower chart last.
There are three types of levels to note here: Support, Breakout, and Bearish Blocks.
Support is just what you think it is, but what makes it true is when the last bearish candlestick is immediately traded through to the upside.
Breakout levels or “Breakers” (credit to Smart Money Concepts & Michael Huddleston) are points of interest that reveal themselves by breaking downtrends in the short-term and pinpoint where a change in trend will occur.
Bearish Blocks are similar to traditional Resistance, however, these are areas where an uptrend was previously stopped dead in its tracks…
You can use these levels for swing trading entries and exits.
On BA, the most recent Breakout channel forecasted where the breakout occurred — the ~$165.00 area.
For this to be validated as a genuine breakout, I’d look for a retest of that area without trading below it… at least, not for any extended length of time.
If it does, below this at ~$150.00 could be a worthwhile point of engagement, but I’d scale in slowly…
Now, notice the Bearish Block above the current share price… A failure here could follow the price action I’ve drawn in white.
But over the ~$225.00 mark opens up a path to ~250.00.
On the lower chart, the TTM Squeeze is bullish, but could be peaking when you look lower at a combination of Stochastic indicators sitting at “overbought” or beginning to crack…
With this being a weekly chart, there’s plenty of time to get in position.
Keep moving,
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