J.B. Hunt (JBHT - Get Report) is the largest trucking component of the Shares Transportation Average ETF (IYT - Get Report) , which is one of only three of the S&P sector ETFs with a positive weekly chart.
The daily chart for J.B. Hunt shows that the stock set its all-time high of $93.50 on April 15, 2015, and declined 32% to its Jan. 15 low of $63.58. This bear market decline is being consolidated in 2016, and the daily chart below shows the Fibonacci retracement levels of this decline. So far in 2016, the stock traded as high as $89.43 on April 19, then traded as low as $75.71 on June 27, as the transportation ETF was setting its post-Brexit vote low.
The weekly chart for J.B. Hunt can shift to positive this week if the trucker has a positive reaction to earnings.
Analysts expect the trucking company to earn $1.02 a share when it reports earnings on Wednesday. Some say that lower oil prices would help the trucking industry. Now, with oil prices on the rise again, can shares of J.B. Hunt continue higher? Let's see what the charts have to say.
Here's the daily chart for J.B. Hunt.
Courtesy of MetaStock Xenith
J.B. Hunt closed Monday at $81.27, up 10.8% year to date. It is in correction territory, 13.1% below its April 15, 2015, high of $93.50. It is also in bull market territory, 27.8% above its Jan. 15 low of $63.58.
The horizontal lines are the Fibonacci retracements of the decline from the April 15, 2015, high to the Jan. 15 low.
After trading as low as $63.58 on Jan. 16, the stock began to regain momentum following a positive reaction to earnings reported on Jan. 21. The stock quickly cascaded above its Fibonacci retracements: above the 23.6% retracement of $70.64 since Jan. 29, then above its 38.2% retracement of $75.01 since Feb. 24. The 50% retracement of $78.54 has been a magnet between March 9 and Sept. 28. In between these dates, the 61.8% retracement of $82.07 was a magnet between March 11 and Aug. 25.
The 2016 high was $89.43 on April 19. The June 27 low was $75.71. The stock is positioned between its 50% retracement of $78.54 and its 61.8% retracement of $82.07 as a pre-earnings neutral zone. The stock is also above its 50-day and 200-day simple moving averages of $81.01 and $79.91, respectively.
Here's the weekly chart for J.B. Hunt.
Courtesy of MetaStock Xenith
The weekly chart shows a red line through the price bars, marking the key weekly moving average (a five-week modified moving average). The green line is the 200-week simple moving average, the "reversion to the mean." The study in red along the bottom of the chart is weekly momentum (a 12x3x3 weekly slow stochastic), which scales between 00.00 and 100.00, where readings above 80.00 indicate overbought and readings below 20.00 indicate oversold. A negative weekly chart shows the stock below its key weekly moving average, with weekly momentum declining below 80.00 in a trend toward 20.00.
Remember that stochastic readings can help investors judge when to reduce long positions. The 12x3x3 weekly slow stochastic is based upon the last 12 weeks of data: each week's high, low and last prices. This measure of momentum rises as a new weekly high occurs, with the last price closer to the high. When this pattern changes and the weekly last price is closer to the low, the stochastic reading will begin to decline, providing an early warning to reduce holdings.
The weekly chart for J.B. Hunt will shift to positive if the stock ends the week above its key weekly moving average of $80.85. The stock is above its 200-week simple moving average of $77.23, last crossed during the week of Feb. 12, when this average was $72.46. The weekly momentum reading is projected to end the week at 40.30, up from 36.92 on Oct. 7.
Investors looking to buy J.B. Hunt should consider doing so on weakness to $78.52, which is a key level on technical charts until the end of this week only.
Investors looking to reduce holdings should consider selling strength to $86.32 and $89.94, which are key levels on technical charts until the end of 2016 and until the end of October, respectively.