Possible Breakout Ahead for JC Penny Inc (NYSE: JCP) Says Market Timer Frank Kollar

October 6, 2009 (FinancialWire) (By Frank Kollar)

Shares of JC Penny Inc (NYSE: JCP) have had a fairly dramatic rise from their bear market lows back on March 6. A 150% rally in six months is not too bad for a department store chain.

JCP hit a wall back on August 7 at $34.43 a share. A 15% correction followed but JCP did not stay down. A September rally was stalled at the $34.10 to $34.20 level for two weeks as traders were unsure whether JCP could continue its advance.

But on Monday, October 5, JCP broke above its October highs and closed at $34.37, only 6 cents shy of the early August highs.

This is the line-in-the-sand for JCP. A decisive close above $34.43 in coming days and shares should be off to the races again. Obviously a reversal here would be bearish so traders need to wait for a close above the prior highs.

The Fibtimer.com (http://www.fibtimer.com) Stock Timing Strategy holds a position in JC Penny.

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

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