During the first quarter of 2012, JC Penney (JCP) was looking very attractive to longs after making multi- year highs. However, things have now changed regarding this previous uptrend.
GAP TIP
Gaps can create a new move in the opposing direction of the previous trend.
CHART REVIEW
On May 5, 2012, JCP had an igniting gap down out of an uptrend. This gap down broke the price support area of $32.50 and pushed JCP to hunt for new demand/support.
KEY LEVELS
JCP has found some demand/support at $19.00 and short-term looks to be headed into testing that area.
THE TRADE
Any bounce on JCP into $30.00 is a shortable event. Look for the target to be at $19.00 off the daily.
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