JC Penney Heads Towards $9 Off Q2 Beat

em>Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

JC Penney JCP shares are trading higher by $0.70 at $8.77 in Friday's session. The catalyst for the rally is a narrower than expected Q2 loss (($0.41 vs. (($0.48) with slightly better sales ($2.88B vs. Est. $2.86B). In addition, the company affirmed its FY 2015 outlook and expects comps to be 4-5% range. It has been a volatile session for the low-priced issue. After the report was released it spiked to $8.90 before retreating to $8.10 and mounting another rally. By the opening of the regular session, it was back at the higher end of the premarket range. The issue had a retreat off the open to $8.45 and the ensuing rally has found resistance ahead of the premarket high ($8.90). only reaching $8.80 thus far. If the rally can continue their may be a group of institutional sellers at the $9 level as well at its July 22 high ($9.07). It has not closed above $9, since July 15, when it ended the session at $9.10.