Target (TGT) - Get Report announced earnings on this week, with earnings down 2 cents from estimates. Revenues for the period were down 0.6% from prior.

These are not very positive results, but MKM Partners has announced a boosted price target on Target, to $80 from $71. The company's shares reacted by surging from the low $70s up to $78 per share in trading later in the week.

The chart below tells the story, but most troubling is the several bearish warnings found in recent days and weeks. Before earnings and upgraded price target, a set of bearish engulfing signals and a bearish doji star pointed downward for Target. But on February 24, price surged above resistance, and that trend continued into 2/25. This contradiction leads to a strong possibility of correcting action to follow. The overbought condition was further confirmed by momentum. The Relative Strength Index (RSI) moved to 72.40.

Expecting a correcting price move to follow soon, we looked at the March options, expiring in 22 days. The 78 put could be bought at an ask of 1.64, or $173 after adding trading costs. It will not take much movement for this at-the-money position to appreciate. This could be a well-timed bearish swing trade on Target.

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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

Besides blogging atTheStreet.com,Michael Thomsett alsoblogs at theSeeking Alphaand several other sites.He is author of 12 options books includingMaking Money with Option Strategies(Career Press, 2016) and has been trading options for 35 years.Thomsett Publishing Website