J.B. Hunt (JBHT) shows more upside

We received a blog question on J.B. Hunt Transportation Services (JBHT). We highlighted this stock as bearish in the 7/31 The Stock Pulse, and it dropped initially after breaking lower from a rising wedge prior to improving and invalidating the bearish setup in mid October.

JBHT gapped up in mid October to confirm a March-October basing pattern. The breakout and retest of the 158-157 zone solidified this bullish setup to target the 185 to 192.50 area, which JBHT is testing this week. The 185 level is also the 61.8% extension of the September-October rally projected from the November low, and we would not rule out a move to the 100% extension (aka measured move) at 201-202, with the late 2024 peak at 200.40. Holding at or above the mid to low 170s on a dip would keep the overall pattern constructive for JBHT. See Chart 1 below.

While JBHT is somewhat extended on a tactical basis, this week's breakout remains intact above 174-172 (breakout level and 200-week moving average) and makes the case for a bullish cup and handle that projects JBHT back to its 2024 and 2022 peaks near 218-291.50.

See Chart 2 below.

Chart 1: J.B. Hunt Transportation Services (JBHT): Daily chart

Chart 2: J.B. Hunt Transportation Services (JBHT): Weekly chart