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 StockCharts.com
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 Fibtimer.com (http://www.fibtimer.com) Stock Timing Strategy has a position in JC Penney.
Disclosure: I am long JCP.