TGT dominated by bulls lifting the market higher throughout the day
Target Corporation (TGT) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
TGT ended Thursday at 96.07 gaining $5.03 (5.53%), underperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (TGT as at Mar 26, 2020):
Thursday's trading range has been $5.26 (5.76%), that's below the last trading month's daily average range of $6.88. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TGT.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving lower in the previous session, the stock managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 92.41 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 100.74 (R1). After having been unable to move lower than 90.52 in the previous session, Target found buyers again around the same price level today at 91.21. The last time this happened on March 13th, TGT actually lost -7.16% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 101.59.
While the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 101.65 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 90.52 where further sell stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Target. Out of 75 times, TGT closed higher 57.33% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 53.33% with an average market move of 0.25%.