Jabil Is Showing Some Weakness

Jabil (JBL) broke out on the upside from a six-year sideways consolidation pattern (2011-16). Typically, the longer the base pattern or consolidation pattern, the longer the subsequent rally. JBL has not quite doubled in the past 12 months, which is a pretty good move, and normally I would be looking for much higher price targets, but there are some technical concerns we need to air.

Looking at a daily bar chart of JBL, below, we can see the rising 50-day moving average line has defined the rally since December. The 50-day line was tested last month and looks like it could be tested again in the next few days. The possible problem with the next test of the 50-day average line is that it might not become a buying opportunity....258 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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