JCP update 8/17/2015: minor 3 underway?

It’s been almost 2 months since I last update on JCP. (see chart below, click to enlarge). Back then we were tracking the ascednding bullish trendline and the descending JCP update 6242015bearish trendline. Price was sandwiched in between and a breakout above the upper line would be bullish. Price did that early July, but then fell back below the ascending line. This could have been viewed as bearish.

However, price held the $8 support and has now rallied about $1/share in 2 days due to earnings. See chart below. As such price has now -once again- broken above the descending trendline, albeit barely and is now right in between important S/R: red and orange horizontal lines. If price can keep upward momentum going, and I think it will, then we should see a retest of $9.50 fairly rapidly, followed by a retest of $11s. The reason why I think further upside is likely is shown in the daily chart below.

 

JCP update 8172015Here we see an A.I. buy signal on the earnings day, as well as a MACD buy crossover, and all TIs are now pointing up. In addition, the bollinger bands are starting to expand with price at the upper band. this often indicates strength; and we should expect IMHO 2 more weeks of rising prices. At the current rate of 5%/day that would translate to around $13. Right in line with the expected first target: weekly R2 is at $13.90.

JCP update 8172015B