Target Corp. (TGT) is trading sharply higher this morning as traders and investors react to its latest quarterly earnings report. TGT was reviewed in late July, where I wrote that "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."
With TGT trading above $88 this morning we have our upside breakout. Let's check the charts ahead of the opening bell.
In this daily bar chart of TGT, below, we can see a bullish set-up heading into today. Prices have been in an uptrend the past 12 months. TGT is above the rising 50-day moving average line and the bullish 200-day line.
The daily On-Balance-Volume (OBV) line has an upward slope telling us that buyers of TGT have been more aggressive for months.
The Moving Average Convergence Divergence (MACD) oscillator has been in a bullish mode above the zero line since May.
In this weekly bar chart of TGT, below, we can see the price action over the past four years. The $85 area has marked resistance for a while now. Prices are above the rising 40-week moving average line.
The weekly OBV line has been rising since April 2017 and confirms the advance. The weekly MACD oscillator is bullish and in an outright go long signal.
In this Point and Figure chart of TGT, below, we can see a price target of $95.
Bottom line strategy: Traders and investors who are long from our previous recommendations should raise stop protection to $80 from $73. $95 is still our price target but we could see it "overrun" in this bull market.