Shares of JetBlue Airways (JBLU) ended the trading session lower by $0.03 or -0.63% from its previous close. JetBlue's price action developed what can be considered a reversal pattern in the form of a tweezer bottom, which is a candlestick pattern that is usually formed at the end of a downtrend. The tweezer bottom is considered a reversal pattern, so traders will need to monitor the price action for confirmation.
JetBlue Airways (JBLU) provides nonstop passenger flight service. The airline is based in New York and uses John F. Kennedy Airport as its main hub. The company flies to various international destinations and in the United States.
Traders looking for an entry in JetBlue Airways can use the tweezers as a good reference point to establish the long position, as the pattern provides defined risk by giving a good reference point for support.
Traders look for tweezer bottoms, as they provide an entry with a small defined risk. They are a leading indicator that provide an alert for a trend reversal or stabilization. The tweezers imply that bears or sellers were not able to push the stock lower, therefore providing the opportunity to look for a bounce.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.