JCP Breakout? - Market Analysis for May 13th, 2013
I have not heard or seen any news about J. C. Penney Company, Inc. (JCP) this morning, but that has not stopped it from breaking out of its 10-week base pattern, hurdling a triple-top at 17.88, running stops that have propelled the price structure to an 18.44 high so far.
My optimal target zone for the current upleg is 19.80-20.10, with resistance zones along the way at 18.30/40, and 18.80/90.
Only a sudden downside reversal and decline that breaks 17.15 will argue that the current upside breakout in fact was a bull trap, and at the very least is not ready to propel JCP to 20.00-21.00 just yet.