Here’s why I think $JEF has more upside – October 3, 2024
This is Scott McGregor at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to take a look at Jefferies Financial Group ( NYSE: JEF ).
JEF ( NYSE: JEF ) is in a well-defined uptrend and above all the major moving averages here. I think that this could be a good trending stock to hold, as long as it can hold above the 21-day exponential period moving average, that’s the blue line here on the chart.
If I zoom out here, we can see that Jefferies ( NYSE: JEF ) has been in an uptrend since November of last year. Yeah, it did dip down under the 50-day moving average a handful of times, but they brought it back up. Its latest test of the 50-day moving average was just last month.
Recently, it’s just been consolidating near the highs here, with resistance right around $63.00. Now, the thing that makes me think that Jefferies ( NYSE: JEF ) has more upside is short interest. If I flip over to MarketSurge and head over to the weekly chart, we can see that there are almost seven days of short interest on Jefferies ( NYSE: JEF ).
So we have a stock that is consolidating near the highs and has some short interest. And if it breaks to a new high above 63.00, I think some of those shorts might get squeezed. They might start to cover, then we might see this trend continue higher.
You can see that Jefferies ( NYSE: JEF ) has positive earnings. It’s in a nice uptrend, and it’s outperforming 94 percent of the stocks in the market right now, based on MarketSmith or MarketSurge’s RS rating.
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