There was relief for JB Hi-Fi’s shareholders yesterday with news that it achieved a lift in sales during January. Same store sales were up 7% on January last year. This puts to rest market jitters over declining sales in the middle of the year and reinforces the operational capabilities of JBH’s management.
The share price had a wild ride after release of this news. At one stage it was up 6% but in the event finished up a creditable 1.8% at $17.05.
The top end of yesterday’s price range ran into significant technical resistance at around $17.80/$18.00. This level could easily be a ceiling for JBH for a while. Chart resistance here includes:
- The previous support line of a well-established triangle formation
- 8% Fibonacci retracement of the last major decline
- Potentially completes an ABCD formation where CD is 1.27 times the length of AB