Target Corp. (TGT) is showing us mixed technical signals as it struggles to break out over $90. Let's review our inventory of charts and indicators to see if this retailer can show independent strength as our own Jim Cramer surveys the retail scene.
In the daily bar chart of TGT, below, we can see that prices made a strong rally from late December to July, including an upside price gap in late May. The rally from December to April looks like the first leg up of an A/B or measured move. The decline from late April to late May is the correction, but the rally from late May has stalled on approach to the $90 area. Judging by the length of the first rally the second rally or the "B" move should have extended to the mid-$90s. TGT is now below the cresting 50-day moving average line and the flat or neutral 200-day line.
The daily On-Balance-Volume (OBV) line shows a decline from mid-July for a pickup in selling. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line in bearish territory but narrowing toward a possible cover shorts buy signal.
In the weekly bar chart of TGT, below, we can see a mixed to bearish picture. Prices are above the 40-week moving average line but the slope of the line is slightly negative.
The weekly OBV line is below its March/April peak and the MACD oscillator has crossed to the downside
In this Point and Figure chart of TGT we see a bullish upside price objective of $96. A trade at $79.84 will probably weaken this chart.
Bottom-line strategy: The charts and indicators of TGT are mixed and I wonder if TGT can overcome the chart resistance around $90.