TJX Is Ready to Rally Again

 | Apr 21, 2017 | 1:37 PM EDT
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TJX (TJX) has made higher lows since early November but the chart needs a new high over $80 to refresh and reinforce this up-move. Overall, TJX has been making a high level consolidation since last August, so the odds favor the uptrend resuming.

With retail being such a rapidly changing industr,y a fresh look at the charts and indicators should help us navigate the short- and intermediate-term trends. Check this daily bar chart below.

In this updated daily bar chart of TJX, below, we can see that prices are now back above the rising 50-day moving average and the rising 200-day moving average line.

The daily On-Balance-Volume (OBV) line made a low before prices did in October. The line has moved higher in a rough fashion, generally tracking the price action. The Moving Average Convergence Divergence (MACD) oscillator just crossed to a cover-shorts buy signal (a cross below the zero line).

In this weekly chart of TJX, above, we can see the upward slope to the long-term 40-week moving average line. The weekly OBV line moved up from July 2014 to July 2016, confirming the advance. The line turned lower with prices, but began a new rise in February of this year. The weekly MACD oscillator is above the zero line in bullish territory.

In this Point and Figure chart of TJX, above, we can see the consolidation pattern and the price level we need to reach to make a breakout -- $80.63. The upside price target from this pattern measures to $92.31.

Bottom line: TJX is looking like it is ready to rally again. Traders should go long on strength. A close above $80 is bullish. Risk below $76 for now.

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