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.

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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.]

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