Revised | 8.5.17 | JCP | XABCD (Bat) Breakout into Earnings

JCP | Overview: JCP has been diverging bullish for months (in yellow), the first chance it had to correct was in Q1, and the corrective move failed into a continuation. Going into Q2 I don't think JCP is going to correct into a bullish trend but will correct into a long sideways moving channel, which price is trading in right now. Price is now trading near the range of the channel which is also a major resistance line. Price formed a stair step pattern within the first 30% of the rally and is now attempting to form another stair step at resistance; confirmation that a continuation will fail is a bearish close outside support of the stairstep. Price has also formed a XABCD (Bat) pattern which is indicating a retracement or reversal. The first target of a retracement is at the .382% line and if price trades through this a close outside the .618% line is confirmation of a reversal with a target at support of the channel. The Sentiment Zone Indicator is not oversold and has room to sell off further, the MACD is rounding to cross the signal line bearish , and the RCGI has already made its bearish crossover and trending bearish . Entries: Speculating a bearish move, enter in bearish if price trades to the range of the stair step, or enter in bearish if price closes below support of the stair step. Stop's: Use the 8 EMA and Daily volatility to help you place your stops.

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Trade Idea VOIDED on 8.17.17