JCP tests its prior high After hitting new 52-week lows in January, JCP rallied strongly towards new highs, and in February the stock actually broke through the $10, 52-week high resistance (green). JCP gained 20 percent from that breakout point, and now the stock is doubling back to retest the old $10 resistance as a new support. The Tale of the Tape: JCP broke its 52-week resistance at $10 earlier this year. The possible long position on the stock would be on a pullback down to that level with a stop placed under it. A break back below $10 could negate the forecast for a continued move higher.Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!Good luck!Christian Tharp, CMT@cmtstockcoach