TJX Cos. (TJX) has made a strong advance from a November 2017 low. By some measures prices are extended on the upside, but that does not necessarily mean sell. Let's go into the fitting room with the charts and indicators and see what fits this morning for the off-price retailer that earned a mention Wednesday from Jim Cramer on "Mad Money."
In this daily bar chart of TJX, below, we can see a strong uptrend with relatively shallow pullbacks/corrections and sideways consolidations. Prices are above the rising 50-day moving average line, and tests of the line since December have been buying opportunities. Price are more than $20 above the rising 200-day line, which is the widest point we can see over the past year.
The daily On-Balance-Volume (OBV) line has been rising the past year, which tells us that buyers of TJX have been more aggressive, with heavier volume traded on days when TJX has closed higher. The Moving Average Convergence Divergence (MACD) oscillator in the lower panel is in a take-profits sell mode, but the two moving averages that make up this indicator have begun to narrow. A crossover to the upside would be bullish should it occur.
In this weekly bar chart of TJX, below, we can see the two-year consolidation pattern from early 2016 to late in 2017 which preceded the upside move. Prices are above the rising 40-week moving average line -- maybe too far above it. The weekly OBV line has been rising since July of last year and its strength helps to confirm the advance in TJX. The weekly MACD oscillator is still pointed up, but it is narrowing toward a possible take-profits signal.
In this Point and Figure chart of TJX, below, we can see that prices have overshot a target of $91.85. This does not necessarily mean prices cannot trade higher, but it does suggest the move to the upside is extended.
Bottom line strategy: Looking over the charts and indicators of TJX and seeing how they are extended by certain measures tells me to be cautious and suggest that traders raise stops to protect some really good profits.