Discussing Target Corp. (TGT) at the beginning of March, where we wrote, "Investors should probably risk to $68 but traders might want to be careful if TGT breaks below $71." TGT declined from early March to early April breaking $71 but not closing below $68." How do prices look now?
In the updated daily bar chart of TGT, below, we can see a sideways trading range has developed for TGT since January. Prices have traded back and forth around the 50-day moving average line. Last week TGT made a strong rally back above the now rising 50-day moving average line. The slower-to-react 200-day moving average line has been rising since December and is still bullish.
The daily On-Balance-Volume (OBV) line has been in sideways trend since January but shows an increase in the past week. The OBV line is now close to making a new high for the move up and would signal to us that buyers of TGT had become more aggressive. The daily Moving Average Convergence Divergence (MACD) oscillator has just turned up to a fresh outright go long signal as it has crossed back above the zero line.
In this weekly bar chart of TGT, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line has shown some improvement since early 2017 but the past two months have been flat. The weekly MACD oscillator has been in bullish territory since early December and is currently narrowing toward a possible go long signal.
In this Point and Figure chart of TGT, below, we can see an upside price target of $91. A trade or breakout at $78.26 would be bullish.
Bottom line: TGT has strengthened recently and could break out over $78 but it may not happen right away. Some sideways movement in the very short term would be anticipated and that could be used by traders to do some buying. A breakout over $78.26 could open the way for an advance to the low $90's.