Retail stocks were all strong today — but here is the long and short term view of JCPenney (JCP) (September 04, 2014)
In this video I want to look at JC Penney ( NYSE:JCP ). This is a stock that I’ve been bullish on for a while; we’ll take a brief look at this. Inverse head and shoulder, left shoulder, head, right shoulder somewhere around there, neckline, you connect this peak, which is in between this low and this one, and then you look at this peak and it’s a little loosey-goosey, but this peaks somewhere around here, which is in between the head here and the right shoulder, so you connect this, and here’s what you get, it’s about $5.00 between the low here of 5.00 and around 10.00 or so; so you add that to the breakout and my price target is about $15.00 or so. That’s something you probably know about because I’ve talked about it several times with “Cramer” a time or two.
My point for mentioning this is this, the stock is working it’s way higher and that’s great, but what I want to point out to you, if you’re long, I want to point out to you that this is not going to go up like this every day. It hit a new high here, not a 52-week high, but we’ll call it a pattern high; it hadn’t been up this high since it was on it’s way down in a big hurry, so it hit a new high here at 11.24, that was the high. Today the stock eclipsed it a little bit, basically the same, 11.28 is the high. This is resistance right now. What you have to do is just understand that this is a little box here; don’t be looking at this saying, “Oh, five or six days of consolidation, now the stock’s going to move higher from here.” It may very well do that, but only if somebody’s really in trouble here on their shorts and they’re trying to push, they’ve got to get in.
There’s a little bullish chatter on JC Penney ( NYSE:JCP ), but generally speaking retail stocks were just up, it had a lot to do with Costco ( NASDAQ:COST ). Look for this to kind of trickle sideways for a while, if it does go up. fine, that’s why I’m already long and that’s why you are too and if you’re not, why not? Did you just hear about this stock? This is really what you’ve got to look for, the slope of the 50-day moving average. This can be trading sideways for a while, all the while the 50-day moving average gets closer, the 20-day moving average gets closer, and it sure seems like every time this stock hits the 20 and the 50 for that matter, the next move is higher.
So look for the potential for this stock to just trickle sideways for a while, I mean it could go sideways for a couple weeks; you mange risk, you don’t predict. I think the stock’s going higher; it could breakout tomorrow, again, it will only be is somebody’s behind the eight ball and they’ve got to cover some stock or they’ve got to buy a bunch. The stock at 30 million shares traded today, there’s plenty of liquidity out here, so patient with this stock; but also be bullish on it, because I think it’s going to work. Ultimately I do think that price target is going to be hit.
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