Technical Analysis of Financial Markets

Tuesday, November 27, 2007

Riverbed Technology, Inc. (RVBD)

J. C. Penney Company, Inc (JCP)

After rallying over 500% since 2003 lows, retail services and departmental store J. C. Penney has declined almost 120% and is currently consolidating at the 61.8% Fibonacci retracement level. With RSI oversold and oversold stochastics signalling a seemingly bullish crossover, an entry into a long position with a stop-loss on close below $40 may serve as a low-risk trade. An 8%, or $10.3bn, increase in Thanksgiving/Black Friday sales compared with a year ago has suggested a strong start to the holiday shopping season. Analysts at Credit Suisse have upgraded JCP from an "underperform" to "neutral” rating: