Is Target Setting for a Break Out?

By Traders Huddle | December 01, 2012 AAA

New York, November 27th (TradersHuddle.com) - Target Corporation (NYSE:TGT) closed the trading day at $62.78, near its 50 day and 200 day moving averages set at $63.23 and $59.78 respectively. Target's price action placed the stock above the 200 day moving average but below its 50 day moving average, a setup that signals a possible break out.Target Corporation (NYSE:TGT) operates general merchandise discount stores in the United States. The Minneapolis, Minnesota company operates general merchandise and food discount stores and a fully integrated online business.

Target seems to be setting up for a tight range between the 200 day moving average as support and the 50 day moving average serving as resistance.

A tiered approach, appears to be the best strategy to maximize possible movements in the stock, as traders could establish a small position in Target and wait for the stock to break out above its 50 day moving average at $63.23. Then they could add to the position as momentum builds with the breakout. On the flip side, if support being referenced at the 200 day moving average set at $59.78 breaks, it could signal further downside pressure for Target.

You May Also Like

Related Analysis
  1. Stock Analysis

    GE to Acquire Oceaneering Product Line, Shares Gain Slightly - Analyst Blog

  2. Stock Analysis

    Affiliated Managers Raises Stake in AQR Capital, Shares Up - Analyst Blog

  3. Stock Analysis

    Accenture Beats on Q1 Earnings & Revenues, Guides Well - Analyst Blog

  4. Stock Analysis

    Baidu Confirms Making an Investment in Uber Technologies - Analyst Blog

  5. Stock Analysis

    Stock Market News for December 18, 2014 - Market News

Trading Center