One week after Target's (TGT) - Get Report powerful post-earnings breakout on Nov. 16, which left behind a huge breakout gap, the stock reached a heavy resistance level near $79. Shares stalled out here after surging nearly 20% off the November low. Later in the month it was clear a pullback was was on the way.

Target was hit hard last Thursday during the retail route. The stock fell over 4.4%, ending a rather healthy consolidation pattern with a downside break. The stock is now stabilizing near the upper band of a key support zone.

This area includes the 50- and 200-day moving averages near the upper band and the powerful Nov. 16 upside gap. If the retailer can regain its footing here, between $74 and $72, a very low-risk buying opportunity for patient bulls will develop. On the downside, a clear break through the $72 area would indicate a much more drawn-out bottoming process is ahead.

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