TGT dominated by bulls lifting the market higher throughout the day
Target Corporation (TGT) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, TGT finished the month 4.96% higher at 125.88 after gaining $1.30 (1.04%) today, slightly outperforming the S&P 500 (0.77%). Today's close at 125.88 marks the highest recorded closing price since January 2nd. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 125.42, Target confirmed its breakout through the prior session high after trading up to $0.51 above it intraday.
Daily Candlestick Chart (TGT as at Jul 31, 2020):
Friday's trading range has been $2.14 (1.72%), that's slightly below the last trading month's daily average range of $2.32. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TGT.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 125.53 (now S1), which is likely to act as support going forward. The last time this happened on July 14th, TGT gained 1.32% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 128.90, upside momentum could accelerate should the stock be able to break out to new highs for the year. Trading close to May's high at 125.97 we might see further upside momentum if potential buy stops at the level get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Target. Out of 494 times, TGT closed lower 50.20% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after three trading days, showing a win rate of 52.23% with an average market move of 0.00%.