TJX Cos. Inc. (TJX) has not been reviewed since the middle of November and a lot has transpired on the charts. Back in November I wrote, "The big picture from the weekly chart suggests that the price of TJX is headed lower to the low $60s, but the daily chart offers some hope of a recovery." With 20/20 hindsight we can see now that TJX has done better than just a recovery. TJX is up strongly this morning so a fresh look is in order.
In this daily bar chart of TJX, below, we can see that TJX rallied from the middle of November from the $67 area to late January where it made a peak around $81. Prices corrected earlier this month to retest the flattening 200-day moving average line and then rebounded back to the topside. Trading today started off with a gap to the upside. TJX is above the rising 50-day moving average line.
The daily On-Balance-Volume (OBV) line turned up in November but has been fairly neutral the past three months. In the lower panel is the Moving Average Convergence Divergence (MACD) oscillator which is turning up to generate a new outright go long signal.
In this weekly bar chart of TJX, below, we can see that prices are above the flat 40-week moving average line. Earlier this month the line was tested briefly tested. The weekly OBV line has been generally positive since July. The weekly MACD oscillator is in a bullish mode and remains positive after narrowing slightly in recent weeks.
In this Point and Figure chart of TJX, below, we can see that trades at $81.44 and then $82.25 would be breakouts. A trade at $82.25 -- which is happening this morning -- could open the way to gains around $91 with the $90.87 price target that is projected on this chart.
Bottom line: TJX is making a major upside breakout. Investors and traders who are long are in the driver's seat now. Look for gains to around $91 and I would raise sell stops to around $75.
