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?