JC Penney Lower In Volatile Trading After Disclosing Improved Sales Comps

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show. JC Penney Company Inc JCP shares were trading lower by $0.24 (2.6 percent) at $9.16 in Tuesday's session. It is in the red despite revealing in an 8-K that Q1 comps growth will be in the 3.5-4.5 percent range. The news, which broke during pre-market trading, induced an immediate spike to $10 before quickly retreating to the lower $9 handle. The issue has not traded in double digits since October 2014, when it peaked at $10.00. During the regular session, the issue found resistance in the same area as it had in the last two trading sessions. On Friday and Monday, it peaked at $9.42 and rallied another $0.08 to $9.50 before succumbing to profit taking. On its decline, it found support just under Monday's low ($9.09), reaching $9.02 before rebounding to its current level. Monday's close of $9.40, was its highest close since October 7, 2014, when it ended the session at $9.19.