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

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