JetBlue Airways Corporation (NASDAQ:JBLU) is highly affected by the crude oil price, like any other airlines company and the recent pullback in the oil price has kept the rally of the stock in check for a week. The last trading session turned into nearly a non-event for the stock as it traded sideways in a very narrow range for the entire session before ending it with a small gain of 0.37%. The volume of 18 million though was much higher than the daily average of 7 million but without any discernible movement in price, that fact alone can’t be very significant.
JetBlue Airways Corporation (NASDAQ:JBLU) has been rising nonstop for over a year now resulting in an appreciation of over 100% in the last 12 months and naturally, that has kept it in the buy list of all the houses. The earnings growth has been a very strong 85.71% and the earning per share has jumped to $1.19 from the earlier $0.51 on a y-o-y basis. The expected EPS this year is a further improved $1.65. The net income saw an excellent growth too, rising to $88 million from the previous figure of $47 million.
From a larger perspective, the crash of oil price by 50% in the period of June 2014 and January 2015 has certainly helped the stock and as long as the commodity stays in the lower sphere, the stock will be boosted. Technically, the stock is close to a supply area of $20-$21 and that may keep the price lower just for a while but the longer term structure suggests further upside in the coming months.
A clear Rounded Bottom pattern is visible on the long term charts, with a target implication of $28 and $32. On any correction, strong buying support can be expected to emerge from the range of $16-$17.