Bears Could Be Shopping at TargetTarget dropped sharply last month. Now, after a rebound, some traders may see further downside in the retailer.
The first pattern on today’s chart is the bearish gap on November 20 after earnings and revenue missed estimates. TGT stalled last week after retracing half the decline. That may suggest a downtrend is in place.
Second, prices are peaking around the same zone where they bottomed in August. Has old support become new resistance?
TGT has also tested its 21-day exponential moving average but remained below it.
Next, stochastics have hit an overbought condition.
Finally, the 50-, 100- and 200-day simple moving averages (SMAs) moved sideways near each other for about two months. But now they’re lining up and falling into order with the faster SMAs below the slower. That may suggest the longer-term trend has become more bearish.
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