Is JC Penney Stock (JCP) Setting Up For A Move Higher?

It’s been a wild and unpleasant ride for JC Penney (JCP) shareholders over the past few years. They’ve endured hell, but it appears that there may be some light at the end of the tunnel for JC Penney stock. Well, at least over the short term.

Here a few reasons why it’s a decent time to take a risk-defined shot on the long side.

  • Shares are attempting to base at the 200 and 50 day moving average combo.
  • That zone makes for a clear stop-out level (risk-defined).
  • Although JCP is down about 10% in the last two weeks, momentum via RSI is still strong.
  • While the broad market reversed sharply Monday and Tuesday morning, JC Penney stock held flat.

Note earnings are slated for the week of May 13th (date unconfirmed).

JC Penney (JCP) Stock Chart

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jc penney stock chart trading jcp april 28 2015

We can also see that the Consumer Discretionary Sector ETF (XLY) is showing relative strength.

Consumer Discretionary ETF (XLY) Chart

consumer discretionary etf xly stock chart analysis april 28 2015

Lastly, the chart below comes via SentimenTrader and shows how negative JC Penney stock sentiment has become. Sentiment indicators are often used as a contrarian indicator.

JC Penney Stock Sentiment

jc penney stock sentiment jcp pessimism april 2015

Thanks for reading!


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No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.