JC Penney (JCP) at Bottom of Bull Trend Channel
11/17/2009 12:01 am EST
JC Penney (JCP) stock made an all-time high above $85 in early 2007, but fell below $14 in March of this year.
A sharp rally from the March lows drove the stock to more than $30 by May, where it topped and then began to form the bull channel that has marked its recent performance.
A new stochastic buy signal at the bottom of the bull channel could be a good place for both investors and traders to take positions.
For traders, the target would be at around $38, but investors will probably want to hold JCP for the long term.
By Sam Collins at OptionsZone.com
[Editor’s note: JCP may also benefit in the short-term during the month of November as retail stocks typically do well during the holiday shopping season.]