J. C. Penney Company Inc (NYSE: JCP) has made a tremendous move over the past 3 trading days surging up from $9.15 to $11.29. The almost 25% move is a result of earnings, but regardless, when you get a 3 bar surge like this, on volume that is significantly higher than normal, a short term top is typically a day or two away. The move simply cannot be sustained and price needs to pull back. AND, with the crazy move up, a larger pull back than normal is expected. The bigger the move up, the harder price will fall. $JCP is now severely extended on its daily chart, and nearing resistance between $11.50 and $12.00. This is on my watch list for a swing short.
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