JCP (Penney J.C.) has been in a downtrend for all of 2012 going from $43.00 to $5.00.
Gap Review
On February 27, JCP gapped up and broke the downtrend line that it established since 2012. The gap up put the stock on a long watch because the downtrend was broken. This action forced out any short players from the entire move down since 2012. Since then JCP has based in sideways action from $7.00 to $10.00. On August 25, 2014 JCP cleared over $10.30 which was a longer term resistance area. I am a buyer of JCP over $10.80.
Key Level
Demand exists into $10.00 and has supply levels at $12.30 which will be our target area.
The Trade
Buy JCP over $10.80, Stop $9.30, Target $12.30.
Disclosure Swing Newsletter Subscribers are Long JCP from $10.80 on 8/25/2014
