Is this trade on target? Check out $TGT. (September 28, 2020)
TGT
I want to look at Target ( NYSE: TGT ) today, If we do get another round of stimulus checks, all of the trillions that are going out to big companies that are kind of breaking up into smaller ones so they can get all of the graft that they can from Washington. Kind of like Ruth’s Chris; I didn’t get the whole Ruth’s Chris thing. What’s a Chris? Anyway, companies or stores like Target ( NYSE: TGT ) or Dollar General ( NYSE: DG ), Big Lots ( NYSE: BIG ), Walmart ( NYSE: WMT ) too, for that matter, that have reasonable prices. Those are probably going to get the benefit from that.
The cool thing about Target ( NYSE: TGT ) is, this has already made a big move; earnings breakout, massive move, 40 million shares. And then it hasn’t really pulled back a lot, just a little bit from where that opening gap was, but just about 3 percent. And after that kind of gap, that’s kind of a big deal. If we just look at where the box is, this is was the high here and then this was the low. This stock has been in this trading range here, until today. Now the box has to expand to take into account today’s prices.
This is what I think, I am looking at this stock and on short-term basis, I look at the high then I look at the low and I have got about 9 percent; but more to the point, about $14.00 from top to bottom. So what I do is, I will take wherever the breakout is, right around here, and extend that about $14.00, this isn’t hard, and I look at $170.00. And so as I look at this stock right now I think $170.00 is your target.
That’s what I would be looking for on upside from this stock. And then maybe just put your stock, a fairly loose one, maybe 3.5 percent. The idea is, if the stock does pull back you don’t want to be hanging on to this stock all the way down to the bottom to see if it’s going to hold that level. If you are going to do that then what you need to do is just sit on this thing and wait until it ultimately tests the 50-day moving average, ultimately that will happen.
But for now, you really have got to kind of look for a breakout buy with a target above 170.00. But again, you want to keep a fairly tight stop because the stock is extended; but the thing is, these powerful stocks can get even more extended.
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