TGT closes lower for the 4th day in a row
Target Corporation (TGT) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, TGT finished the week -2.85% lower at 117.49 after losing $1.19 (-1.0%) today, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 117.64, the share confirmed its breakout through the prior session low after trading up to $0.46 below it intraday.
Daily Candlestick Chart (TGT as at May 22, 2020):
Friday's trading range has been $2.18 (1.83%), that's far below the last trading month's daily average range of $3.26. 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.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 116.57 (S1). After having been unable to move lower than 117.64 in the previous session, the stock found buyers again around the same price level today at 117.18. The last time this happened on Tuesday, TGT actually lost -2.87% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could accelerate should prices move below the nearby swing low at 117.12 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Target. Out of 70 times, TGT closed higher 54.29% 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 58.57% with an average market move of 1.23%.