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Don’t Chase the J C Penney Company Inc Stock Earnings Rally

Today's rally doesn't change anything about JCP's stinky chart

JCP stock

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Ailing retailer JC Penney Company Inc (NYSE:JCP) finally gave JCP stock owners something to cheer about during last night’s earnings report. If they have the strength to cheer after such a persistent and prolonged beating, that is.

JCPenney reported its same-store sales doubled the Street’s estimates, rising 1.7%. However, the company still lost money. Just not as much as investors expected.

JCP stock is currently up 18% in early morning trading. The million dollar question is whether the good news is worth buying, or whether today’s price jump should be viewed as the final throes of a dying retailer.

I suggest letting the JCPenney chart be your guide.

JCP Stock Charts Remain Shaky

While an overnight 18% pole-vault may sound like a victory worth celebrating, for a stock like JCP, which was down 67% year-to-date heading into earnings, it’s barely a blip on the radar.

As a self-professed charting addict, I suggest playing a game I like to call “noise or noteworthy.” To avoid making a mountain out of a molehill, let’s see whether today changed the technical posture of JCP stock’s death spiral.

Is this a noteworthy move worth changing our outlook on the stock? Or, is it merely noise?

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Article printed from InvestorPlace Media, https://investorplace.com/2017/11/dont-chase-the-j-c-penney-company-inc-stock-rally/.

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