TGT stuck within tight trading range
Target Corporation (TGT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
TGT ended Wednesday at 147.99 losing $1.08 (-0.72%), slightly underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (TGT as at Sep 16, 2020):
Wednesday's trading range has been $1.82 (1.22%), that's below the last trading month's daily average range of $3.03. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for TGT. Prices continued to consolidate within a tight trading range between 147.36 and 150.39 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Notwithstanding a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on August 11th, TGT actually gained 2.19% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
After having been unable to move above 149.84 in the previous session, Target ran into sellers again around the same price level today, failing to move higher than 149.73.
Although the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the nearby swing high at 150.39 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 147.36 where further sell stops could get triggered. As prices are trading close to September's high at 151.77, upside momentum might speed up should the share mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Target. Out of 76 times, TGT closed higher 52.63% 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 61.84% with an average market move of 1.29%.