Target Corporation (NYSE:TGT) stock has biggest-ever one-day gain

Target Corporation (NYSE:TGT) stock has biggest-ever one-day gain

Target Corporation (NYSE:TGT) stock has biggest-ever one-day gain

Target Corp. stock soared 20.4% in Wednesday trading after a second-quarter earnings report that provided analysts with further evidence that a combination of store and online sales is valuable.

The stock move means Target TGT, +20.43%   is heading towards a record one-day percentage gain.

Target reported fiscal second-quarter earnings and revenue that topped the FactSet consensus and raised its guidance. On the earnings call, John Mulligan, chief operating officer for the retailer, laid out how the company’s omn-ichannel strategy, bringing brick-and-mortar stores and e-commerce together as one selling and fulfillment unit, was working for the company.

“Think of it this way: last year stores fulfilled sales accounted for an average productivity of just over $300 per square foot,” he said, according to a FactSet transcript. “And when you do the math, every additional billion dollars of store-fulfilled sales would raise that productivity by about $4 per foot.

“In other words, if we double last year’s $5 billion in digital sales, and fulfilled all of that extra volume in our stores, we see our average store sales productivity rise by just over $20 per foot.”

Target announced this week that its latest private-label brand will be Good & Gather, a food brand that will consist of more than 2,000 products by the end of 2020.

“Bar none, we think this was one of the most well-rounded quarters that Target has reported in some time with strength up and down its P&L,” wrote UBS. “Its investments in omni-channel and its stores are generating healthy returns.”

UBS rates Target stock neutral with an $86 price target.

Target stock is up nearly 56% for the year to date while the S&P 500 index SPX, +0.82%   is up 16.7% for the period.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 111.42.

The projected lower bound is: 95.18.

The projected closing price is: 103.30.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 3 rising windows in the last 50 candles–this makes the current rising window even more bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 93.2304. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 10 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 77.60. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 11 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 388.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 10 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 3 period(s) ago.

Rex Takasugi – TD Profile

TARGET CORP closed up 17.470 at 103.000. Volume was 333% above average (trending) and Bollinger Bands were 84% wider than normal.

Open     High      Low     Close     Volume___
99.920 103.380 98.160 103.000 4,969,712
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 85.63 86.45 77.82
Volatility: 110 56 44
Volume: 1,575,954 1,115,912 1,216,365

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

TARGET CORP gapped up today (bullish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
TARGET CORP is currently 32.4% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of TGT.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on TGT.N and have had this outlook for the last 0 periods. Our momentum oscillator is currently indicating that TGT.N is currently in an overbought condition.

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