Retail stocks have shown some power since the spring, and Target has been one of the better performers in the space. For all the earnings challenges Target has faced over the past couple of years, along with crushing competition from both sides (Amazon and Walmart), it’s a tribute to management that the stock is not just thriving but looking like it will go even higher.
The bottom pane on the chart shows strong money flow after a pause in July. A bullish pennant pattern is forming, which indicates consolidation off the spectacular move post-earnings. The MACD is on a confirmed buy signal, while the RSI is overbought. This means the stock could go sideways for a bit before following the yellow bars up to new highs. I believe the stock could eventually make its way toward 100.
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Target Corporation operates as a general merchandise retailer in the United States. The company offers beauty and household essentials, including beauty products, personal and baby care products, cleaning products, paper products, and pet supplies; food and beverage products, such as dry grocery, dairy, frozen food, beverage, candy, snacks, deli, bakery, meat, and produce products; and apparel for women, men, boys, girls, toddlers, infants, and newborns, as well as intimate apparel, jewelry, accessories, and shoes. It also provides home furnishings and décor comprising furniture, lighting, kitchenware, small appliances, home décor, bed and bath products, home improvement products, and automotive products, as well as seasonal merchandise comprising patio furniture and holiday décor; and music, movies, books, computer software, sporting goods, and toys, as well as electronics that include video game hardware and software. In addition, the company offers in-store amenities, which comprise Target Café, Target Optical, Starbucks, and other food service offerings. It sells its products through its stores; and digital channels, including Target.com. As of March 8, 2018, the company operated 1,826 stores. Target Corporation was founded in 1902 and is headquartered in Minneapolis, Minnesota.