Target (TGT - Get Report) is showing the same "rectangle" pattern right now, it's just less far along. Like ANF, Target has been consolidating sideways (in the shorter-term), bouncing between resistance at $64 and support at $61. Now, as TGT makes its way up to test that resistance level, investors could be in for considerable upside.
That's because the resistance at $64 is just a buck shy of a more significant resistance level at $65, a 52-week high for shares. If buyers can leverage their momentum to take out any lingering sellers at $65, then TGT could have a more meaningful move on its hands. Making new highs is significant from an investor psychology standpoint because it means that everyone who has bought shares in the last year is sitting on gains -- as a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses.
Momentum also looks promising for Target -- 14-day RSI is just on the verge of breaking out of a downtrend that's been in force since back in late August. Since momentum is a leading indicator of price, that's a good signal for this retail giant.
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