Friday’s 3 Big Stock Charts: J C Penney Company Inc (JCP), Under Armour Inc (UA) and Kimco Realty Corp (KIM)

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We’re looking at a mixed market for Friday, but at the stock level, there are at least three companies that are demanding attention from investors as their charts are showing improvements that increase the odds that they will surge higher.

Among these companies this morning are J C Penney Company Inc (NYSE:JCP), Under Armour Inc (NYSE:UA) and Kimco Realty Corp (NYSE:KIM). Let’s take a look at these three stock charts in depth:

J C Penney Company Inc (JCP)

J C Penney Company Inc (JCP)
Source: Chart courtesy of StockCharts.com

JCPenney already was in a great short-term bull rally, but it’s now shifting gears into an intermediate and long-term bull give the improvements that we continue to see in the stock’s chart.

Before this morning’s earnings, JCP stock had already transitioned into an intermediate bull market as its 50-day moving average has bottomed and is now trending higher. Typically a stock has a 2-to-1 likelihood that the next day will move higher when the 50-day is ascending.

JCP shares touched up on their top Bollinger Band yesterday, telling us that there was a possibility that shares could start a parabolic move on any surge higher. This morning’s earnings report is exactly what the stock needed to spark that move.

Short interest on JCP shares stands at 8 times their average daily volume. This means we should get a short squeeze in the wake of this morning’s report to accelerate the upside move.

Under Armour Inc (UA)

Under Armour Inc (UA)
Source: Chart courtesy of StockCharts.com

UA shares moved higher yesterday as the company finally appointed a new chief marketing officer. Under Armour already had started to make a technical comeback after lagging the rest of the market for much of the year. The fundamental news should help progress Under Armour higher.

In June, Under Armour shares started their recovery as the trend of their 50-day moving average transitioned from a declining pattern to ascending. That transition helped the stock survive the earnings-related selling that dipped UA below $38 a few weeks ago. Momentum indicators currently are shifting into bullish territory at the same time that Under Armour is preparing to attempt a move above its 200-day trendline at $41.60.

A successful move above the $41.60 will be technical proof that larger traders need to jump back on this stock that was left to flag in the wind a few months ago. Current holders of the shares are likely to benefit from a rotation back into the shares over the next four to six months.

Kimco Realty Corp (KIM)

Kimco Realty Corp (KIM)
Source: Chart courtesy of StockCharts.com

Real estate investment trusts (REITs) have suffered some short-term selling. You can thank the last jobs report, which has the market thinking we could see higher interest rates on the horizon. Truth is that the continued global quantitative easing is likely to pressure our rates lower, keeping dividend stocks in favor.

Kimco Realty shares have pulled back 6% since the jobs report. KIM stock currently is sitting close to what will likely be technical support at the $30 level.

Kimco shares, along with many other REITs, were trading in overbought territory a few weeks ago. That made the recent pullback a natural move as the shares needed to be brought back in-line with their trends after overextending prices a bit. But with shares out of oversold territory, they are presenting a buying opportunity for traders that did not want to buy at highs.

The charts show support at $30 from the 20-day trendline and also the shares’ lower Bollinger Bands at the same price. Momentum indicators, while dropping, still are in positive territory, adding to the support. Expect to see traders turn attention to the interest rate outlooks again and realize that KIM is a buying opportunity.

As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/08/fridays-3-big-stock-charts-j-c-penney-company-inc-jcp-under-armour-inc-ua-and-kimco-realty-corp-kim/.

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