Joby Aviation, Inc. (NYSE: JOBY) shares took off on Tuesday, climbing 8.33% to $7.99, as the broader airline sector got a tailwind from falling energy prices. The move comes on the heels of a significant partnership announcement and a shift in the oil market that has investors feeling a bit more optimistic.
Crude oil tumbled more than 5% to $76 a barrel on Tuesday, reversing earlier gains. The drop followed comments from U.S. Treasury Secretary Scott Bessent, who suggested that a deal could be reached to reopen the Strait of Hormuz. According to Trading Economics, renewed diplomatic hopes between the U.S. and Iran eased concerns about supply disruptions.
The broader market also rallied, with the Nasdaq up 3.06% and the S&P 500 gaining 1.77%. Airline stocks, in particular, benefited from the prospect of lower fuel costs, providing upward momentum across transportation and aviation equities.
But Tuesday's surge isn't just about oil. It builds on momentum from July 22, when Joby stock rose after finalizing a multi-year agreement with Virgin Atlantic. Under the deal, Virgin Atlantic serves as Joby's exclusive U.K. airline partner, integrating air taxi bookings into its mobile app and website alongside long-haul flights. Planned routes include London Heathrow to Central London in eight minutes and Manchester Airport to Leeds in 15 minutes.
From a technical perspective, the longer-term picture for JOBY remains heavy. The stock is trading 10.6% below its 50-day SMA ($8.93) and 29.3% below its 200-day SMA ($11.29), and the death cross that formed in February keeps the bigger setup tilted bearish. That said, price is now 6.7% above its 20-day SMA ($7.48), which is consistent with a short-term bounce trying to build.
Momentum is best framed through RSI, which is sitting at 51.51—neutral, but no longer showing the "washed-out" conditions seen when RSI hit oversold territory in March.
- Key Resistance: $8 — a round-number area sitting right on top of current price, where rebounds can stall quickly
- Key Support: $7 — a nearby floor that’s still close to the recent July low zone, making it a practical "line in the sand" for dip-buyers
At the time of publication, Joby Aviation shares were up 8.33% at $7.99, according to market data.
