JCP, a buy again!

Just like BBY, Best Buy, JC Penney is very promising, even for a second trade, first the big picture;

bby aug 20 2013jcp aug 20 2013

There are differences but what they have in common is a very well shaped C wave . actually took the biggest dive and as you can see from BBY there is usually very little rhyme or reason for the moves (other than EW). In more detail for we get;

jcp aug 20 2013 sbjcp aug 20 2012

The wedge is a 5th wave of C. There is a good deal of overlap which increases the confidence in labelling this as a wedge (or a contracting diagonal in EW lingo). There is even a nice 4th wave triangle to add to the confidence. A buy with a first target of $28, a double! All this on a massive quarterly loss, just like Best Buy at the time.