Through TheFLY's Eyes: Target Corporation
from Theflyonthewall.com












A Technical View

After our earlier fundamental view, we thought we would revisit Target (TGT) from another perspective.

Target cracked through the bottom of the bullish price channel it was in after reporting earnings this morning. As is so often the case, the stock had signaled that something was not right with the world well-ahead of the event itself. It had been in a downtrend for nearly a year and had traded in a narrow range over the last six months of $51 to $56.

Coming into earnings then there was a good chance that this range was at risk of being broken on a surprise (which could also have been a positive one, but was not). That has happened today with the stock having hit a low in the $48 area (happens to be a major support zone). Since then the stock has bounced back to near the $50 area.

In range breakouts or breakdowns, price tends to persist for some time in the direction of the break. The key support areas to monitor (for possible downside objectives) are $48.79, $47.75, $46.90, $46.15. Resistance areas (to monitor for rally attempts) are $49.95, $50.88, $51.86, $52.56.

Chart created with Equis MetaStock