Retail giant Target Corp. (NYSE:TGT) has come back on my radar as the stock sits in a crucial area that has potential both to the long and to the short side.
On the weekly chart note a multi-year area of resistance around $60 while multi-year support comes in around $45 (the $15 in between act as a trading channel). Should $45 fail the next area of support doesn’t come into play until $41.
The daily chart signifies the importance of the immediate resistance level at $52.30, which also happens to coincide with a downward sloping 200 day simple moving average. The stochastic oscillator looks to have some upside left, albeit limited.
As such Target Corp. (NYSE:TGT) sure sits in a tricky spot currently, but therein lies the opportunity of using technical analysis to help us define trade setups. A solid daily close above $52.30 could get this stock moving towards the multiyear resistance area of $60 again. Of course broader market weakness (broken weekly charts of major equity indices) must be taken into account here. On the other hand significant failure to pierce through $52.30 may set up a trade to the short side with a possible target near multiyear support around $45 or lower.