J.C. Penney (JCP) remains in a downtrend. Prices have bounced a little so far today, but that has not moved the needle for chart watchers. Let's review the charts and indicators to see what kind of price action is needed to improve the picture.
In this daily bar chart of JCP, below, we can that all-too-familiar picture in retail of lower lows and lower highs. For the chart of JCP to break that pattern, we need to make a higher low and then a higher high. Imagine a rally to $3.50 and then a dip to $3 followed by a rally to $4. That might do it, but it has not happened. Prices are still below both declining moving averages. The OBV line is weak and there are no bullish divergences from the momentum study.
In this weekly bar chart of JCP, below, we can see how prices have been on sale since early 2016. The 40-week moving average line is bearish. The weekly OBV line is pointed down, but the 12-week momentum study suggests the decline is slowing.
In this Point and Figure chart of JCP, below, we can see the downtrend and the pockets of resistance. A base pattern is needed.
Bottom line: A fundamental analyst would want to see evidence that a company is making a turnaround and the technical analyst wants to see it in the price action of the security.
