JetBlue's stock price is high, but here's what it is doing

JetBlue's stock price is high, but here's what it is doing ...

Today, the airline space is making a Merger Monday. Or, at least, it''s trying to.

JetBlue (JBLU) - Get JetBlue Airways Corporation Reportshares are trading lower on the day, down about 4% following Spirit Airlines'' offensive takeover bid. Spirit Airlines, Inc. Reportat $30 per share for its part. Spirit stock is up about 12% on the day.

Spirit, which planned a $6.6 billion merger with low-cost Frontier Group Holdings (ULCC) has twice rejected JetBlue''s approach, citing the difficulty of receiving regulatory approval, and has as least conceded that JetBlue''s $33 per share might be a "superior offer" that investors may need to consider.

Is it possible to make a $33 offer to get the deal done? I''m not sure, but there is currently a bid in Spirit stock andsellers in JetBlue stock.

JetBlue was one of the best-performing airline stocks. Below, youll notice that it actually recovered all of its Covid losses and instantarily took out its pre-Covid high.

Trading JetBlue Stock

JetBlue''s stock market is a weekly chart. has created a chart.

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The stock of Spirit Airlines is rising as JetBlue prepares to launch a large takeover bid of $30 per share.

JetBlue''s stock is down in three weeks, but today''s action suggests we may be heading for a fourth weekly decline.

Last week, the stock fell to and recovered from its 78.6% retracement. Currently below that level, traders are curious if the stock may reclaim this mark. JetBlue stock is considering a larger rally.

I''ll be focused on the $11.50 area more specifically. That was support in March, which slowed in April, and became more resistant earlier this month.

If the stock can push above that, then we might build a $13 expansion that turned into resistance. Its also near where the 21-week moving average comes into play.

The downside is that this is a key area for JetBlue''s stock.

The previously discussed 78.6% retracement comes into play near the psychologically significant $10 mark, but also near a major area from the first and second quarter of 2020.

If JetBlue''s stock falls weekly-down below its last weeks low of $9.22, and is unable to reclaim this level, then we might be considering a decrease into the $7.50 to $8 area.

While the levels are low, it appears that this is undoubtedly unlikely. However, if JetBlue cant hold $9.22, then we must begin looking at lower levels.

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