J.B. Hunt Transport Services, Inc., together with its subsidiaries, provides transportation and delivery services in the continental United States, Canada, and Mexico. The company operates in four segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), and Full-Load Dry-Van (JBT). The JBI segment offers intermodal freight solutions, including origin and destination pickup, and delivery services. The DCS segment designs, develops, and executes supply-chain solutions, which support various transportation networks. The ICS segment offers non-asset and asset-light transportation logistics solutions; and flatbed, refrigerated, expedited, and less-than-truckload solutions, as well as various dry-van and intermodal solutions. The JBT segment offers full-load and dry-van freight services by utilizing tractors operating over roads and highways.
To review potential trading opportunities with J.B’s stock, please take a look at the 1-year chart of JBHT (J.B. Hunt Transport Services, Inc.) below with my added notations:
After rallying nicely from its September low, JBHT has formed what may be a double top price pattern (red). Double tops are reversal patterns and are as simple as they sound: Rallying up to a point (T), selling off to a support, and then rallying back up again to approximately the same top (T). As with any price pattern, a confirmation of the pattern is needed. JBHT would confirm its pattern by breaking the $70 support (navy) that has been created by the double top pattern.
The Tale of the Tape: JBHT should be moving lower if it confirms its double top pattern. A short trade could be made on a break of support with a stop placed above the level. However, a trader could also go long at $70 as well if they believe JBHT is simply consolidating.
Would you like assistance in making your TBS trades? If so, email me at Christian@yolopub.com and let’s talk about working together one on one!
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT