Here is the Summary:
I thought I would pick on the much hated $JCP this week for a post on using RSI as a simple buy trigger. Before I get into it, let me add one note here: regardless of what you use for a trigger, use your own trade exit process (stops, option collars, etc.) – if you take a trade, it is your trade so use your rules.
Now on to a Weekly chart of $JCP:
Each of the prior 3 touches at 30 RSI have been a good entry for a new long entry. Price is out ahead of RSI this time so use that info accordingly. Also note that the MACD cross has occurred so be mindful of that as an indicator.
I am evaluating a more long-term trade adjustment at the moment, using options out in 2013, and find this entry point to be very appealing based on this simple RSI trigger. For now I am long stock in my long-term account.
h/t @ppearlman for bringing this up to me.