0LD8 trade ideas
TGT - BUYWe entered into a long-term Target position yesterday.
Riots and COVID will cause small shops to go out of business or close up during repairs. Therefore, people will turn to the larger chains.
Target is the type of store you go in looking for one thing and come out with 10. That's only going to increase as there become less small business to compete with.
If anything, it's a good place to store come cash in between positions.
You could also wait for a clean break-through of 130 before entering.
Target Clings to Support, With Gap Looming BelowTarget reported decent earnings this week, but not a lot of buyers showed up. Now traders may want to watch for a potential breakdown with the big-box retailer near a key price zone.
TGT gapped from $86 to $100 last August on signs that its big digital push had paid off. It followed that with another strong quarterly report on November 20.
Since then, however, things haven't been so hot. TGT peaked around $130 a week before Christmas. It then announced in mid-January that the key holiday-shopping season missed estimates. The shares gapped down, bounced feebly and then continued lower to a potentially important level around $105.
This zone could be crucial because it's near the 200-day simple moving average (SMA) and the price area shortly after the August gap.
The recent price action is also potentially bearish because TGT tried to rally after earnings three days ago, but hit resistance around the old $111 support area from January 31.
Relative strength has been poor over the course of 2020, with TGT trending lower even as the S&P 500 hit new highs in January and February. It also faces potential risk from the spread of coronavirus.
Still, there isn't confirmation yet. Traders shopping for downside in TGT may want to wait for a close below the 200-day SMA.
GoNoGo suggests Target is oversoldIs Target oversold? GoNoGo Trend is a “Go” but in all trends there are counter trend corrections. The red arrow above the last bar shows that the GoNoGo Oscillator was at an extreme and suggests that Target may move lower over the next few bars.
If this happens look for the GoNoGo Oscillator to bounce off zero and a green circle for a possible entry into the trend.
Buy TargetTarget Corporation (NYSE: TGT)
Target Corporation is a well known discount store that been around over 100 and went public around 1967.
JesusTrade Score:
Buy
Scale Score
Risky (7/10)
Portfolio Hold:
Monthly Swing
Fundamental Reasoning:
With earning around the corner, their numbers need to be payed attention (up the trade score due to earning being need). Year over year, store sales are up 20% and online sales up 200% April 2019 compare to April 2020, Target store sales are up 5% and Online sales up 4%. With rumor of recession around the corner and COVID-19 still active. This should be a good pick up.
HEAD & SHOULDERSA head and shoulders pattern is a chart formation that resembles a baseline with three peaks, the outside two are close in height and the middle is highest. This pattern is believed to be one of the most reliable trend reversal patterns, and predicts a bullish-to-bearish trend reversal.
$TGT Trading At Key Trendline Support$TGT has sold off to key trendline support and this is a dip worth buying. There's a lot to like with $TGT.
Target (NYSE:TGT) says it has been experiencing unusually strong traffic and sales as customers stock up on items like food, medicine, cleaning products and pantry items.
As a result, the retailer is adjusting the expected timing of some of its strategic initiatives, to support the team and minimize potential disruptions in their work. Target now expects to do 130 store remodels in 2020 vs. the previous expectation of ~300 and open 15 to 20 new small format stores this year vs. the 36 previously announced.
Target says comparable sales are more than 20% higher Y/Y in March so far, with comparable sales in essentials and food & beverage up more than 50%. During that same period, comparable sales in apparel & accessories are down more than 20%. The retailer warns that continued sales declines in higher-margin discretionary categories could result in lower-than-expected gross margin dollar performance for the remainder of the quarter.
Target is pulling guidance due to the unusually wide range of potential outcomes for Q1. The company is also suspending share repurchase activity in the current environment.
Credit Suisse digs into Target (TGT -6.7%) after the company was one of the first large retailers to provide an update on financial performance since COVID-19.
CS points to Target's significant sales upside due to essentials/food purchases, but also notes the higher costs that limit the short-term EPS upside.
"These are not data points that can be extrapolated forever, but we believe that the longer-term implications are more positive in our view, given TGT's ability to fulfill such significant demand," writes analyst Seth Sigman.
The firm keeps an Outperform rating on Target and price target of $125 (33% upside potential).
As always, trade with caution and good luck to all!
