Target Corp. (TGT) - Get Report was upgraded today by TheStreet's Quant Ratings service. An upgrade for a retailer? You heard it so let's see how this bullish input fits in with the current chart picture and indicators.
In this daily bar chart of TGT, below, we can see what now looks like a seven-month base pattern. There is a "left shoulder" in March and April. There is a "head" in June and July followed by a "right shoulder" in August. Prices have not yet exploded to the upside on heavy volume upon breaking the "neckline" but TGT is testing/trading above the 200-day moving average line. TGT is also above the rising 50-day average line, which could soon cross the 200-day line for a golden cross.
The On-Balance-Volume (OBV) line has been rising since late June to confirm the price strength. Momentum is not showing a bearish divergence so we don't have that to fret about.
In this weekly bar chart of TGT, below, we can see that prices are testing the declining 40-week moving average line. The weekly OBV line has moved up and down with prices and the Moving Average Convergence Divergence (MACD) oscillator has been improving and could cross the zero line in a few weeks.
In the Point and Figure chart, below we get a bullish picture with a breakout already at $59.23 and a pullback. A price target of $67.16 is projected.
Bottom line: A lot of the quantitative signals have worked out really well (read profitably) when combined with the charts and indicators. Today's upgrade of TGT with positive indicators and charts tells me that traders could go long on strength above $60 look for a move to $67, risking below $56.
Click here to sign up for Quant Ratings, where you can read our full report on Target or more than 4,000 other stocks that our service rates in real time every market day. However, please note that our Quant Ratings service assesses stocks using a proprietary computer model that runs a variety of factors through quantitative and technical analysis. Ratings do not necessarily reflect the opinions of Jim Cramer or other columnists, who may use different criteria to grade stocks.
(This article originally appeared at 3:20 ET on Real Money, our premium site for active traders. Click here to get great columns like this from Bruce Kamich, Jim Cramer and other writers even earlier in the trading day.)
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