J.C. Penney (NYSE: JCP) is on the Verge of Signaling 'Buy'

Storied department store operator J.C. Penney (NYSE: JCP) made it back on my radar as the stock showed some notable relative strength (RS) during the past couple of weeks.
As is often the case when a troubled stock begins to show marginally more positive price movement, JCP's move has been accompanied by several positive news items.
On Feb. 19, Citigroup (NYSE: C) analyst Oliver Chen initiated coverage on JCP with a "neutral" rating and a $6.50 price target. At the time, shares were trading near $6.
After the close of trading on Feb. 26, the company reported its first quarterly profit in more than two years. Shares rallied in after-hours trading and closed up more than 25% the following day. This massive move was due in part to short covering, as many bearish traders were caught off guard.  (more)

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