During Friday's Mad Money program, Jim Cramer gave viewer's his game plan for this week. He noted that on Tuesday, we'll hear from Target (TGT) and Nordstrom (JWN) . Cramer said Target keeps getting better and better, and Nordstrom is too cheap to ignore.
Let's check out TGT. We last looked at TGT on July 30 and wrote that "I am not a big fan of retail but it looks like TGT is positioned to move higher on the charts. Approach from the long side on a trade at $126 or higher risking a close below $116 for now. The $156 area is our Point and Figure price target."
In this daily bar chart of TGT, below, we can see that TGT has doubled from its March lows. Prices are currently testing the rising 50-day moving average line. The trading volume looks like it has weakened since the middle of November.
The On-Balance-Volume (OBV) line has been stalled the past two months suggesting a balance between bulls and bears. The Moving Average Convergence Divergence (MACD) oscillator has been weakening since the middle of January and is now back to the zero line.
In this weekly bar chart of TGT, below, we can see that prices have tripled from their late 2018 low around $60. Prices are in an uptrend and stand above the rising 40-week moving average line.
The weekly OBV line has made little progress over the past three months and that suggests some caution. The MACD oscillator has crossed to the downside for a take profit sell signal.
In this daily Point and Figure chart of TGT, below, we can see a nearby downside price target of $174.
Bottom line strategy: I will assume that traders took profits at our target price of $156 or higher. I have no special knowledge of earnings for TGT but the charts suggest we might see a dip. I would stand aside through this earnings release.
