1 1 correctly predicted forecast
Send me real-time posts from this site at my email

Anticipatin Resistance in JC Penney (JCP)

JC Penny (JCP) is in a bearish trend, but has been trading sideways since May. As price consolidates, I would maintain a bearish bias. That means, if price comes up to a key resistance, we should anticipate some selling back into the bearish trend.

JCP Daily Chart

(click to enlarge)

Anticipating Resistance:
1) The first reason we should anticipate resistance here between 5.00 and 5.30, is that this is already an established support/resistance pivot area. 
2) Second of all, if price comes up here, it will be challenged by the 100-day simple moving average (SMA), which can sometimes act as resistance in a downtrend.
3) In a bearish market, the RSI should hold under 60. It has done so throughout 2017 and without any strong clues otherwise, we shoudl expect this pattern to continue. 
Downside:
- Perhaps the next bearish swing will be a 20% slide from around 5.00 to about 4.00. 

Cancel