The TJX Companies
With Black Friday well underway, it's no surprise that The TJX Companies (TJX - Get Report) is getting attention today. The $32 billion off-price apparel retailer has been in rally mode lately -- and it looks like enough to break the downtrend that's been holding share price under for the last couple of months.
The price pattern at work in TJX is a double bottom, a setup that's identified by two swing lows that occur roughly around the same level. A breakout above the intermediate peak that separates them is the buy signal for shares. For TJX, that breakout happened on Monday, shoving shares through the breakout level with little trouble. While this stock's price is still below downtrend resistance right now, it's close to a breakout above that red dashed line too -- a move that would indicate the start of a new uptrend.
For TJX, I'd recommend waiting for the breakout above trendline resistance. Even though the double bottom signaled a buy, this stock has already achieved most of that upside. The resistance break is a more long-term price move to grab onto. And for more Black Friday names, check out 5 Retail Trades for Black Friday.
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