March 23, 2010
Shares of J C Penny Inc (NYSE: JCP) continue their march higher since they bottomed on February 5, 2010 after correcting some 35% from October through early February.
J C Penney has a long way to go to again reach their early 2007 highs above $85 a share. With bear market losses of 87%, J C Penney suffered much larger losses than the broad market did.
But J C Penney tends to trend well for several months at a time and this stock is again in a well defined trend.
After reversing in early February, J C Penney has climbed steadily and closed on Monday just below its 61.8% retracement level, at $31.95, for the October to February decline.
The odds of surpassing this level are good. Monday’s rally in shares of J C Penney constitutes a bullish outside trend continuation day, with lower lows, higher highs and also a higher close than the prior day.
Considering this stock’s tendency to trend, we look for a close above the 61.8% level shortly and then a run to the prior October closing high at $36.81.
Disclosure: The Fibtimer.com (www.fibtimer.com) Stock Timing Strategy holds a position in J C Penney.