Tuesday, December 6, 2011

Target has issued a buy signal: TGT

Target Corp. (NYSE:TGT) — This retail giant, which operates about 1,500 general merchandise stores in the United States, is a victim of a slow economic recovery and its stock shows it. TGT hit a high over $60 in December 2010, but gapped lower and attempted to stabilize in January at its 200-day moving average.

However, same-store sales have shown significant improvement throughout 2011, and recent holiday numbers are strong. The stock has responded by forming a saucer bottom.

In October, its 50-day moving average crossed above the 200-day creating a “golden cross,” which is a very bullish development.

The stochastic issued a buy last week, so the stock will most likely find solid support at the 200-day moving average just over $50. TGT pays a dividend yield of 2.34%. The short-term technical trading target is $58.

TGT Chart
Click to Enlarge

No comments:

Post a Comment