Taking a look at the chart and the price action on a tough tape for JC Penny.
We will have a TriggerPoint Setups video up shortly on this… But here is the basic situation.
JC Penny is expected to announce earnings on 8/20. Not many seem to think that anything good will come out of that announcement. however, there is a large amount of shares sold short against this name to the tune of 30% of the float.
Notice on the chart the arrows that point out a zone from about $13 to $15.50 that has little volume participation. These area we call “fast zone” that are often associated with quick moves. With some short covering inevitable ahead of earnings, this may be a trade that could have some potential.