Target Inc. (TGT) was reviewed at the beginning of March, and I recommended a cautious stance after its big mark-up: "Investors should probably risk to $68 but traders might want to be careful if TGT breaks below $71."
TGT dipped to around $68 at the end of March and again in early May. From that May low TGT has been in a new rally recently making new 2018 highs. There is is overhead resistance from 2016 in the $80-$85 area and the $64,000 question is whether it can be overcome.
Let's check out some updated charts.
In this daily bar chart of TGT, below, we can see that prices are above the rising 50-day moving average line. The 200-day line is also bullish and intersects down around $70. The daily On-Balance-Volume (OBV) line has been generally positive since December but I would like to see it make a new high soon or this potential bearish divergence will begin to worry me.
The Moving Average Convergence Divergence (MACD) oscillator is turning up for a new outright go long signal.
In this weekly bar chart of TGT, below, we can see the new high for the move up. Prices are retesting the early 2016 highs and this area could act as resistance but it may not last long as traders have had a couple years to adjust their positions.
The weekly OBV line has improved the past two months and the weekly MACD oscillator is bullish.
In this Point and Figure chart of TGT, below, we can see a double-top breakout and a $96 price target being projected.
Bottom line: It looks like TGT can push higher through the old resistance in the $80-$85 area. Traders can operate from the long side risking to $73 now. The $95 area is the price target.
