JCP Is Popping, Where Is It Stopping?
This morning, leading retail stock J.C. Penney Company Inc (NYSE:JCP) is catching a strong bid higher on the trading session. The stock is moving on the news that the company is going back to its old ways of offering sales to shoppers. Last year, the company announced that it was done with promotional pricing, however we can obviously see that the results have not been very good for the stock price. Remember, J.C. Penney is not Nordstrom Inc (NYSE:JWN), they simply have two different consumers. Nordstrom has always catered to the more affluent consumer, while J.C. Penney has attracted more of the bargain shopper.
J.C. Penney could start to take some business away from other retail leaders such as Macy's Inc (NYSE:M), Sears Holdings Corporation (NASDAQ:SHLD), and Kohl's Corporation (NYSE:KSS). Short term traders following JCP stock should watch for intra-day resistance around the $20.60 level. The daily chart of JCP stock will have daily chart resistance around the $22.00 area.