2 Ways to Take Aim at Target

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Serge Berger is the head trader and investment strategist for The Steady Trader. Sign up for his free weekly newsletter.

Target Corp. (NYSE:TGT) – This retail giant is back on my radar as the stock sits in a crucial area that has potential both to the long and short side.

On the weekly chart, note a multiyear area of resistance around $60, while multiyear support comes in around $45 (the $15 range in between acts as a trading channel). Should $45 fail, the next area of support doesn’t come into play until $41.

 TGT Weekly Chart

The daily chart signifies the importance of the immediate resistance level at $52.30, which also happens to coincide with a downward sloping 200-day simple moving average. The stochastic oscillator looks to have some upside left, albeit limited.

TGT Daily Chart

TGT stock sits in a tricky spot, but therein lies the opportunity of using technical analysis to help us define trade setups. A solid daily close above $52.30 could get this stock moving toward the multiyear resistance area of $60 again.

Of course, broader market weakness (broken weekly charts of major equity indices) must be taken into account here. And a significant failure to pierce through $52.30 may set up a trade to the short side with a possible downside target near the multiyear support around $45 or lower.


Article printed from InvestorPlace Media, https://investorplace.com/2011/09/trade-of-the-day-target-corp-nyse-tgt-2/.

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