JBLU & USDCAD - Long to 26

JBLU has shown a strong correlation with USDCAD, as both financial instruments are inversely correlated with oil (shown below). It should also be noted that USDCAD has recently broken out of a cup and handle pattern on the monthly chart and a continued rise could be an early indication of similar price action in the aerospace sector. The wave count for USDCAD suggests that an extended fifth may be in progress, which if true would provide a confluent fifth wave target. JBLU targets may be placed at 26 and 30, extensions of wave ((3)). These extensions proved to be important in sub-degree 5th wave targets and the fractal characteristic of EW suggests that these levels may also play an important role on the larger degree. A SL may be placed below wave (1) high at around 21.40.

Correlation with USDCAD:


USDCAD Monthly Cup and Handle:


USDCAD Wave Count: