J C Penney Company Inc (NYSE: JCP)

J. C. Penney Company, Inc., through its subsidiary, J. C. Penney Corporation, Inc., sells merchandise through department stores in the United States. The company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings, as well as provides various services, including styling salon, optical, portrait photography, and custom decorating. As of January 30, 2016, it operated approximately 1,021 department stores in 49 states and Puerto Rico.
Take a look at the 1-year chart of JC (NYSE: JCP) below with added notations:

After hitting new 52-week lows in January, JCP rallied strongly towards new highs, and in February the stock actually broke through the $10, 52-week high resistance (green). JCP gained 20 percent from that breakout point, and now the stock is doubling back to retest the old $10 resistance as a new support.

The Tale of the Tape: JCP broke its 52-week resistance at $10 earlier this year. The possible long position on the stock would be on a pullback down to that level with a stop placed under it. A break back below $10 could negate the forecast for a continued move higher.