SIACharts Logo

Commentary >

Target Corp. - (TGT) - May 20, 2021 

Boosted by a stronger than expected earnings report, US retailer Target (TGT) rallied 6.0% yesterday and climbed three spots within the Green Favored Zone of the SIA S&P 100 Index Report to 13th place. Since last summer, Target shares have been steadily advancing in a step pattern of rallies followed by periods of consolidation at higher levels. Note how previous resistance levels near $170 and $200 reversed polarity and became support following breakouts. Yesterday, the shares staged a major breakout, clearing $125 to a new all-time high on increased volume, signaling a surge in investor interest and the start of a new rally phase within a larger uptrend.

Measured moves from the two most recent trading ranges, $170-$200 and $200-$215, suggest potential upside resistance tests on trend near $230, $245 and $260, along with the $250 round number. Initial support appears near $200, a round number and recent breakout point which also coincides with the 50-day average.

Since a winter correction bottomed out in March, Target (TGT) shares have resumed their primary uptrend. First, a bullish Double Top breakout called off a bearish double bottom signal, then the shares broke out over $200.00 to complete a bullish Spread Double Top pattern and signal the start of a new upleg. The shares have remained under accumulation into May, rallying to new all-time highs approaching $220.00.

Based on horizontal and vertical counts, next potential upside resistance tests on trend appear near $230.50, $245.10 and $260.10. Initial support appears in the $200.00 to $202.00 area where a 3-box reversal, round number and recent breakout retest cluster.

With a bullish SMAX score of 7, TGT is exhibiting near-term strength against the asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

Related Posts

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.