One week on, we find TJX is still trading like a bear and further downside testing is anticipated with older support in the $66-$64 area the next target.
The charts and indicators haven't changed much in the past week, but that is bearish as trend is still down and buyers have not acted aggressively. Let's check closer on our updated charts and indicators.
In this daily bar chart of TJX, above, we can see the slopes of the 50-day and 200-day moving average lines are bearish. Volume did not increase in the past week as price bounced, so we assume the move was largely short-covering. The daily On-Balance-Volume (OBV) line inched slightly higher but remains in a larger downtrend. Momentum is still negative.
Looking at this three-year weekly chart of TJX, above, we see a chart that has been rolling over for more than a year. Prices are below the declining 40-week moving average line. The weekly OBV line is bearish and close to breaking to new lows. The MACD oscillator is bearish.
In this Point and Figure chart of TJX, above, we can see there is a double bottom at $69, and break of those lows could open the way to further declines to the $58 area.
Bottom line: TJX has bounced twice from the $69-$68 area. The third time TJX may not be so lucky. I would prepare for declines to $66-$64 and then the $58 area as the trend is still down.