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JC Penney Inc (NYSE: JCP) Finally Moving Higher?

|Includes:J.C. Penney Company Inc. (JCP)

August 22, 2012 (By Frank Kollar)

Shares of JC Penney Inc (NYSE: JCP) have really taken a huge hit over the past half year, after new marketing strategies failed to inspire share holders.

JCP lost 55%, declining from $43.13 on February 9th, 2012 to $19.25 on July 17th. But when looking at the charts alone, JCP may have finally reached a bottom and could be starting a tradable advance.

One tool we use at Fibtimer is the 50-day exponential moving average and the 10-day exponential moving average. After a long term decline, when these two averages cross, there are high odds of a new bullish trend ahead.

Chart Courtesy of

It also offers a close sell stop if the signal is a false one.

Buying JCP at current levels, the stock was trading at $24.30 in late afternoon on August 21st, the stock has a good shot at reaching $27.99 in coming weeks, and potentially $30.00 a share after that.

A sell stop at $22.99 a share offers a low risk trade.

The ( Stock Timing Strategy has a position in JC Penney.

Disclosure: I am long JCP.

Stocks: JCP