Following the technicals of JOBY

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Technical Analysis

JOBY is an interesting stock that has been cruising around the sub $10 dollar range for a few years now, only testing that level a few times since dropping past in in 2021. As you can see in the first chart below, JOBY has found a strong support around the $5 range since it tested $10 in 2023. A few pumps since but nothing to write home about without any great news to back it up. Until now.

In the recent months JOBY has come out with some news, perhaps the biggest one was it’s deal with TOYOTA and in the Middle East. This sparked a surge to help push JOBY to test the $10 ran twice within 6 months of each other. Now the big question is will the technicals help support the fundamentals to make JOBY rise and not just be another pump and dump on some news.

In the next chart below, I put in a support line and want to discuss a prince support range. The line you see on the chart is a general support line using a few resistance and support touches at the $7.66 level. The blue beam on the bottom is a range in which I didn’t feel comfortable putting in a hard number for a support line and instead it seems this is a range which buyers feel comfortable getting in.

But now lets look at one more chart and discuss entry points. Obviously the best buy in point would have been down in that $5 range that we’ve discussed but now JOBY seems to be comfortably playing above the $7.66 support line and even ending a few days above $10 consecutively. The chart below shows the last two tests of the $10 and $11 range. As we can see both times they got rejected.

JOBY can either form a cup and handle and make the next push back above $11 finally and then have to reassess the next resistance or it could be forming a double top and we could see yet another retracement back down to $5. That would be massive because you would be looking at a 50% drop.

A Final Note

Cheap stocks are fun to get into because you can buy a lot for a little but remember, it doesn’t take a lot to loose a lot. Like I said, JOBY’s comfort level is at $5 so buying in here at the top of this resistance could be risky. I would ideally like to sit on the side and accept missing the next leg up and see where it settles, or wait for another dip to see if the fire has burnt out.