Fan Yang
1
All posts from Fan Yang
Fan Yang in Fan Yang,

Target (TGT) Retreating to Channel Support

Last time we looked at Target $TGT, we noted upside towards 66, but also noted resistance first around 63. Indeed, the market sold TGT at 63 and it has fallen below 60 to about 59 by the close of the 10/31 session.

TGT Daily Chart

(click to enlarge)

Rising Channel:
- The daily chart shows that Target has been in a rising channel since finding a low on the year in June. 
- As we can see 63 was also a projected channel resistance. Now TGT is almost at the channel support.
- I think we can expect support around 57.50-58. 
- A break below 56 would challenge the bullish outlook and open up a bearish continuation scenario. 
- For now, let's anticipate support at the channel support, especially with the RSI approaching 40, which it should stay above of if the trend is indeed bullish in the medium-term.