Back in mid-January, Target (TGT) - Get Report  shares were hit extremely hard after the company reported holiday sales numbers. After opening the Jan. 18 session with a huge breakdown gap the stock finished with a 5.5% drop on extremely heavy trade. This powerful downside momentum drove the stock past its multi-month 2016 lows and into deeply oversold territory. 

Target began to show signs of downside exhaustion two weeks ago. Since then, the stock has been firming up nicely as a very solid base formed. For patient investors, a very low risk entry opportunity has developed. A significant rebound could be on the way for the retailer ahead of its February 28th earnings report.

In the near term, Target bulls should take on a much more positive view of the stock. A very solid support zone is now in place between last week's high of $64.50 and the February low of $63.35. This area should be considered a low risk buy zone.

On the downside, a close back below $62.90 would violate the January low sending a clear warning sign that more base building is ahead. On the upside, an important hurdle will be the $67 area. If this level can be cleared, a very heavy resistance zone will have been taken out.

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This article is commentary by an independent contributor. At the time of publication, the author was long TGT.