Jack Henry & Associates, Inc. (JKHY)

Jack Henry & Associates Inc is a payment processing company for the financial services industry. It offers services like electronic funds transfer, payments processing, loan processing. Jack Henry has 9,000 customers in the US including 1,000 banks and 800 credit unions. The services provided by Jack Henry are mission-critical in nature for banks and there is a high switching cost to move to a competitor. Morningstar has assigned Jack Henry a wide moat rating and its long term prospects look bright

The long-term monthly chart for Jack Henry demonstrates a strong and consistent uptrend that has lasted a decade. There are rarely major pullbacks throughout all the past years. Two major pullbacks happened in 2018 and 2020. The one in 2020 saw the price fall 20% and briefly break the bottom of the long-term trend. In November 2020, however, the price has bounced back up from the bottom of the long-term trend as well as a historic resistance level at $151 which has now turned into a support zone. The likely price target now is the previous peak at $185. A stop loss can be placed below the $151 support line and the bottom of the long-term trend, somewhere around $145.