Target Corporation’s stock (TGT) plotted a double top in August and November of 2021.
TGT plotted a lower high in April of 2022, and that was the start of a cruel, multi-week drop in the share price.
That drop, however, was contained by TGT’s best respected weekly moving average support lines, which registered on January 7th, 2019, almost 3 years ago to the day.
These support lines, the 351-week EMA (body) and the 364-week EMA (wick), reported to the office multiple times in the recent months: 4 times in June-July and once this December:
Zooming in:
The above charts reveal that May was the month when TGT started respecting the 35-week SMA (body) and the 43-week SMA (wick) resistance lines.
TGT trades sideways slightly above the support lines while the resistance lines close in from above.
This price action is very similar to Bitcoin’s price action, depicted in our post Bitcoin Enters a Bermuda Triangle, About to Break Support or Resistance, dated October 9th, 2022.
For Bitcoin, entering this ‘Bermuda triangle’ ended up in breaking support and moving to the down side.
That, however, does not imply the same outcome for Target.
Notwithstanding, if TGT breaks its best respected moving average support lines, it may see the round $100 price.
On the flip side, if TGT breaks its best respected moving average resistance lines, the round $200 may be in reach.