Reviewing the JE Chart tonite. The stock price pulled back from a high of 10.25 back to its 50 day MA of around $9.70 as I expected, closed today at $9.94. The RSI is at 57.64 and after a dip it has started to rise again. The MACD, while still above zero, it has now crossed below the signal line and is giving a weak bearish signal. We are seeing some waning momentum on the stock.
We have seen a nice positive trendline develop since the stock crashed in November. However, in the recent pullback, the price has fallen below that trendline and now moving back towards the trendline. What we have to watch for here is whether the stock price can push back above that trendline and maintain a position over $10. If it can, we may see further upward momentum as we move into February.
Two big events in February: The quarterly earnings report and the dividend announcement. The earnings report is due out the week of February 4th and I expect that the dividend announcement for February will be made at the same time. If the news is positive on both counts, we may see the stock bump up to $10.50 by the end of February.
Also note that JE is entering its period of seasonal strength, which should bode well for the stock as well. However, as we approach that date, I expect that the volatility will increase in expectations of what the earnings results are for the last quarter.