Gapping & Yapping has been preaching the gospel of Jay Crew for several weeks now. Lets take a look at the chart.
JCG is in a confirmed downtrend, but is showing signs of trying to buck the trend. Today’s move on volume found the stock stuck just beneath the 50 day average and the downtrend line, and several points beneath the 200 day moving average. With the RSI(2) near overbought, and longterm resistance just overhead, it may be prudent to be cautious at this critical junction. However, both the MACD and Stochastics have room to move up, and so should the price.
Â Should JCG over take the 50 dayÂ average andÂ the downtrend line, it would represent a significant change in the trend. It seems the bet here is that the trendÂ is changing. If that is true, then $34 should definitely not be breached.