TGT unable to break through key resistance level
Target Corporation (TGT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, TGT finished the month -1.96% lower at 119.93 after gaining $1.36 (1.15%) today, slightly underperforming the S&P 500 (1.54%). Closing above Monday's high at 119.28, the stock confirmed its breakout through the prior session high after trading up to $1.16 above it intraday.
Daily Candlestick Chart (TGT as at Jun 30, 2020):
Tuesday's trading range has been $2.17 (1.83%), that's below the last trading month's daily average range of $3.00. 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.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
The market managed to close back above the 20-day moving average at 119.68 for the first time since June 23rd. Unable to break through the key technical resistance level at 119.96 (R1), the share closed below it after spiking up to 120.44 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on May 29th, TGT lost -2.32% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 120.65 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 116.75 where further sell stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Target. Out of 760 times, TGT closed higher 51.97% 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 55.26% with an average market move of 0.68%.