2use

JPC - tight between several ideas

NYSE:JCP   PENNEY J C INC
This is an assembly of several ideas, one from user littleriver, one from sublimares2, and a small observation from me.

1) littleriver provides an idea of the possible breakout if the stock follows the beam up
2) sublimares2 noted wisely the narrowing bear flag - and it is narrowing nicely within the beams noted by littleriver .Should the stock go into the red zone, it will violate the range of the flag and will have a lot of downside potential
3) Then there is an unfilled gap that will be itching to get filled with the downside turn
4) A very loose, but still visible inverse head and shoulders - its not ideal, but it is quite symmetrical in terms of shoulders (even the small bumps near the head). Also visible on Weekly chart
5) Also note that the 9.90 - 10.00 price is hardly breachable . The stock tried to breach it twice now, while bumping too many times to ~9.15 - there is a huge resistance at this point. But with the swings below this price getting shorter and shorted one can see more wind from the bulls and bears giving up. If 9.15 gets breached and price closes above it for 2 consecutive days, it will run to 10 as well as i see. it - then there can be other patterns in play if the currently outlined ones are invalidated.
6) Some technical indicators : While CCI is at the top normal range, RSI has some small room to go up (a jump also has room). So does RMI - but all of them have more room to go down. So if it tanks, it can be quite hard.

Basically so far we have a higher low, but no higher high to confirm a change of trend. Once price breaks above 10.15 its a clear change from many ideas. But beware that it can go in whatever direction as there are no headwind news and the stock price gets jammed in a flag. Trade on your own risk.

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sublimares2
2 years ago
Nice chart but I do not agree with the inverted.H&S. If the rising wedge is going to unfold the gap will get filled.
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