Is JetBlue Airways Setting Up for a Breakdown?

NASDAQ: JBLU | JetBlue Airways Corporation News, Ratings, and Charts

JBLU – A support line has formed in the chart of JetBlue Airways Corp. (JBLU). The stock has hit that level a couple of times and looks to be heading back down to it. If it falls through this level, a breakout is expected. Read more to learn how to take advantage of this trade.

JetBlue Airways Corp. (JBLU - Get Rating) is a low-cost airline that offers high-quality service, including assigned seating and in-flight entertainment. It carries over millions of customers with an average of more than 1,000 daily flights and serves approximately 99 destinations in the United States, the Caribbean, and Latin America.

The company posted a loss in third-quarter, making it the seventh successive quarterly loss. But passenger revenue did increase by more than 100% year over year due to an improvement of air-travel demand. Unfortunately, increasing fuel prices may eat into its bottom line.

JBLU has a strong balance sheet with $3.3 billion in cash as of the latest quarter. This compares favorably to only $391 million in short-term debt. As for growth, Analysts expect sales to jump 176.8% year over year in the current quarter, leading to a Growth Grade of B in our POWR Ratings system.

The stock does look overvalued, though, with a forward P/E of 34.25. JBLU was showing bullish momentum at the beginning of the year, only to tumble from March through August and September. Performance has been mixed since, but the stock has recently been trending down again. This is evident in the chart below.

Take a look at the 1-year chart of JBLU below with added notations:

Chart of JBLU provided by TradingView

JBLU has formed an important level of support at around $14 (blue) over the past year. The stock has repeatedly rallied off that mark, but now it has fallen back down to that level again. If JBLU were to break support, lower prices will likely follow from there.

If the stock were to break below the support, a trader could enter a short position with a protective stop order placed above the entry point.

Click Here to Read the Greatest Trading Book Ever Written

Want to Discover More Great Trades?

What is better than finding the 1 attractive stock in this article?

Discovering 5 timely trades…like the ones in this new special report. Click below to claim your free copy now!

5 Stocks Ready to BREAKOUT!

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


JBLU shares were trading at $14.67 per share on Tuesday morning, up $0.17 (+1.17%). Year-to-date, JBLU has gained 0.89%, versus a 26.12% rise in the benchmark S&P 500 index during the same period.


About the Author: Christian Tharp


I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
JBLUGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Trump or the Fed More Important to Stock Investors?

The S&P 500 (SPY) is flirting with new highs once again. But it is not very clear what is driving these stock price gains. That is why Steve Reitmeister shares his latest views including a market outlook, trading plan and top picks to stay on the right side of the action.

3 Dividend Growth Stocks for Long-Term Wealth

Dividend-growth stocks offer steady income and long-term value. With the Fed holding rates and inflation expected to ease, now is an opportune time to invest in companies like AbbVie (ABBV), Energy Transfer (ET), and Cheniere Energy (CQP) that consistently raise payouts. Read more…

3 Sub-$10 Tech Stocks with Multibagger Potential

The tech market is booming, fueled by AI, cloud computing, and digital transformation. With next-gen software, automation, and 5G driving growth, investors have massive opportunities. For those seeking high potential without the hefty price tag, sub-$10 stocks like Yext, Inc. (YEXT), Eventbrite (EB), and inTEST Corp. (INTT) could be your next big win. Read more...

Viavi Solutions vs. Lumentum Holdings: Which Optical Tech Stock Shines Brighter?

The optical tech industry is well-positioned for growth due to technological advancements and increasing demand for seamless connectivity. So, let’s analyze optical tech stocks, Viavi Solutions (VIAV) and Lumentum Holdings (LITE), to determine which optical tech stock shines brighter. Read on...

Investors in “Wait and See” Mode

Have you noticed that the S&P 500 (SPY) has been trading in a tight trading range of only 6,000 to 6,100 the past few weeks? Steve Reitmeister shares why this is happening along with a game plan for being on the right side of the market action. Read on for the full story...

Read More Stories

More JetBlue Airways Corporation (JBLU) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All JBLU News