Retail stocks have been beaten down for a while now as Amazon is eating everyone's lunch. I heard on Friday's CNBC Fast Money show that Amazon is now getting into lingerie with their own fashion line. I guess there are no boundaries for Jeff Bezos. But as I was setting up my StockTwits account yesterday and adding some ticker symbols to my watchlist, I noticed the 1 year chart for JC Penney (JCP) and it looked like a Double Bottom chart pattern had formed. Has something changed in retail?

Let's review a couple of charts for this beaten down retailer and see if its share price is ready to get up off the canvas. PS, if you are a member over at StockTwits, give me a follow!

JC Penney (JCP) Double Bottom Chart Pattern

This first chart will illustrate the Double Bottom chart pattern that caught my attention for JCP. It is a 1 year daily candlestick chart.

While I don't show it, the MACD Histogram for the share price reflects increasing buying momentum, a sign of higher share prices.

A Double Bottom chart pattern can develop where the 2nd downtrend creates a higher low or a lower low. There are appropriate times for each.

Having a higher low for JC Penney (JCP) in this circumstance makes sense, especially when you step back and look at the larger picture for its share price.

JCP - 4 Year Daily Chart

When I scale back the chart a bit to encompass a 4 year period, I notice that JC Penney (JCP) has not only formed a Double Bottom chart pattern in the $6 area, but a Triple Bottom chart pattern. The support area from a Rising Window candlestick pattern provided support for each of the 3 pullbacks to form the Triple Bottom.

After the 1st pullback, the second pullback created a higher low. Then the third pullback made even a higher low. When a stock keeps making a series of higher lows that is typically a bullish indicator.

The above trendlines could almost be used as a roadmap to trade JC Penney's share price on this potential rebound trade. If the rebound trade interests you, let me know. The trade set-up doesn't look too bad...

JC Penney (JCP) - Summary

If JC Penney (JCP) is a retailer that interests you, let me know in the comments below or in the Idea Chamber. If there is any interest, I will post some upside price targets for its share price. I just wanted to post a quick chart on a stock I've previously covered here so I don't receive another comment about "what happened to that stock?" (Just kidding SD).

Any pullback to $7 or below is an opportunity to purchase a few shares for the potential rebound. Let me know if there is interest...