It’s been my pleasure to provide posts for @seeitmarket. Often times, my posts employ math and harmonics to identify chart patterns and price targets. But in this case, it’s better to keep it simple. Really simple. Today I’ll look at a long-term chart of a major retailer: Target stock (TGT).
One way to keep track of a stock’s rate of change and/or trend is to use long term log trend charts. Basically, if a security stays above/below a long term trend line then the trend is alive and well.
However, when a trend line is overcome either above or below then it’s time to take notice. Case in point: Target stock (TGT).
Below is a long term stock chart of Target (TGT). Also note that it is a monthly chart. As of the 05/31/2016, we saw TGT’s first monthly close in over 40 years below its long term log trend line. In my opinion, this is not a bullish indication for the future of Target (TGT).
The concern is that the stock may be carving out a top (and this is a warning). So the bulls need to see a major recovery during the summer months or the stock will stay on alert.
Target Stock Price (TGT) – Monthly Closing Chart
Thanks for reading.
Further Reading: U.S. Dollar Index: Time To Start Buying The Dips?
Twitter: @BartsCharts
Author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
