JC Penney ( JCP ) has gotten the beat down of the century as far as retailers go. Was it deserved? Yes indeed it was! Take a look at their stores. Take a look at their pricing. There is nothing that jumped out that said this company was going to be around much longer. As investors sized up their long-term outlook, the stock was slammed. Then something miraculous happened... The earning reports started to help change the once dim outlook of a company in disarray to a company that has brighter days ahead of it. As you take a look at the stock, you see that it has been dominated by the $10 resistance level.
In late September last year, the stock broke the $10 support with heavy volume triggering the selling that eventually led it to the 52 week low of $4.90. A candle pattern called a matching low developed from this low. A matching low pattern is just two single candles that form the same low. Our combination of candle analysis and the technical indicators show this as the reversal. From there, the stock began to lift itself higher. As the stock lifted higher, the MACD remained relatively flat. Our experience leads us to the conclusion that the stock would go higher. Now that it has finally closed above the $10 resistance, our candle analysis put a near price target of $12.
Dwayne Tucker is an individual investor in Akron, OH. He began is journey in 2006. After numerous investment mistakes, he followed a simple method to make consistent gains. He credits his achievements to hard work, self discipline and his hunger for education. From his experiences, he helps other beginning investors clear the difficult hurdle by teaching his simple technique. Dwayne helps run www.wincrease.com , which is dedicated to helping beginning individual investors.
This article was originally published on MarketIntelligeneCenter.com