Target Corp. (TGT) was reviewed just a few weeks ago and I wrote, " TGT has rallied more than 50% from its June/July lows. A longer pause in the advance would be 'normal' and welcomed. With resistance above the market in the $80-$85 area from 2015/16, it may take a while before TGT resumes its advance." Looking back now on the price action of the past three weeks we can refine our outlook.
In this daily bar chart of TGT, below, we can see a mixed picture -- some things bullish and others bearish. TGT is above the rising 50-day simple moving average line and the rising 200-day line. Prices retested the January high but the 12-day momentum study made a much lower high recently suggesting that price momentum was diverging and suggesting further softness ahead.
The daily On-Balance-Volume (OBV) line eked out a slightly higher high and suggests that buyers of TGT are still acting aggressive.
In this weekly bar chart we also have mixed readings. Prices are above the rising 40-week moving average line but we still see the overhead resistance in the $80-$85 area. The weekly OBV line peaked in early January and has been retreating and the MACD oscillator has narrowed a bit. These last two signals are not constructive.
In this Point and Figure chart of TGT, below, we can see a bullish price target of $90 but we will need to see a trade at $79.05 for a fresh upside breakout. On the downside a trade to $72.27 could weaken this chart.
Bottom line: Investors should probably risk to $68 but traders might want to be careful if TGT breaks below $71.