Shares of TJX (TJX - Get Report) are on the verge of a breakout. The discount retailer has been bumping up against heavy resistance just below $80.00 this month. As March comes to a close the stock appears headed for a clear take out of this key area. Once past, TJX has room to run.
Shortly after its Feb. 22 earnings report, TJX entered a very narrow consolidation pattern. The top band of this range was held in check by heavy supply near the November peak. The stock's tight range that has dominated in March has allowed TJX to build a very solid base underneath. All that is needed for patient investors is a break above $80.00 for a fresh rally let to begin.
In the near term, TJX bulls should consider the stock a fairly low risk buy near current levels. TJX, which is an A-rated stock, will be in much better shape once the $80.00 area is convincingly taken out. Until then, shares are setting up well for more upside. Key support is now in place between last week's high of $79.20 and the February peak at $78.90. On the downside, a close back below $77.50 would violate this week's low indicating more range bound trade is ahead.
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