Missing The Target
One
of the rules of thumb can be paraphrased as follows:
Love
what the world hates. Hate what the world loves.
…a
rather fanciful way to express contrarianism. After a multi-month run-up many
old-economy stocks are ready to break out of consolidation patterns. Target
(
TGT |
Quote |
Chart |
News |
PowerRating)
is trading in an ascending triangle. Traditionally bullish. But I wouldn’t bet
on it.
TGTÂ has
been in a steady uptrend since mid-December. It has
encountered resistance at the $38 level on at least four
occasions. On January 31 and
February 1, the stock broke the $38 level intraday on double-the-average
volume, but failed to close above it. Today,
the stock broke a short-term uptrend line and closed slightly underneath it. Let’s
see if we get some follow-through the downside.
Eddie