Shares of retailer Target (TGT) have been trading sideways since last May. With earnings due to be released before the opening of trading on Tuesday we have a number of questions about the charts and indicators. Let's check them and see if they provide any answers.
In the daily bar chart of TGT, below, I can see that the shares have weakened so far this month with TGT testing the rising 50-day moving average line and the declining 200-day line. The trading volume has been neutral-looking.
The On-Balance-Volume (OBV) line has been moving sideways since June. The Moving Average Convergence Divergence (MACD) oscillator crossed to the downside in early February for a take profit sell signal. The oscillator is still above the zero line but that condition may not last long.
In the weekly Japanese candlestick chart of TGT, below, I can see a lower shadow on the latest weekly candle pattern. A lower shadow is a sign that traders are rejecting the lows. This could be a "tell" ahead of earnings Tuesday. TGT is trading above the bottoming 40-week moving average line.
The weekly OBV line has edged up from late December. The MACD oscillator has been rising and is just below the zero line.
In this daily Point and Figure chart of TGT, below, I can see a potential downside price target in the $147 area.
In this weekly Point and Figure chart of TGT, below, I can see the same $147 area.
Bottom-line strategy: Overall the charts and indicators of TGT are mixed and that could result in a rally or a decline after earnings are released Tuesday morning. I have no special knowledge of what TGT will tell shareholders. Stay nimble is my best advice at this point in time.
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