The StockTwits Charts Stream gets filled daily with thousands of stock charts created by the largest real-time trading community in the world. Below are a few notable ones for your perusal:
J.C. Penney’s (JCP): Penney’s has been a story stock for a couple of years now as the price has dropped precipitously even as the broader market climbs almost everyday. Ron Johnson has come and gone, notable activist investors from Soros to Ackman have been involved and yet the retail chain still appears unable to right ship.
It is critical to look at the price action amid all this noise as it tells us what real investors actually have done and are doing now. JCP price is telling quite the story.
1. A rising trend channel that has been in place for 43 years on JCP is in jeapordy. The chart below, posted to StockTwits by @Ryknow, shows the channel, which began taking shape as far back as the early 70′s, along with yesterday’s closing price of 13.82. Today, the stock is trading down another 4% and below the bottom support line drawn on the chart.
A close at month’s end well below this support line will signal a possible end to this 43 year trend channel with resolution to the downside.
2. 15-Year Head & Shoulders Pattern: Phil Pearlman posted another ominous long term JCP chart shown below. This one depicts a confirmed 15 year long head and shoulders formation. This pattern is widely viewed as bearish and the close below the support line drawn on the chart confirms the pattern.
3. A Bullish View: Perhaps, though, all is not gloom and doom for JCP. @Vconomics posted this last one on StockTwits this morning which zooms in and focuses more on price behavior over the past 2 years. Take a read of V’s explanation and analysis of the bullish wedge taking shape posted directly on the chart below.