Trading Idea - Is Target close to Resistance?

Published on Tuesday, 31 January 2012 09:28 Written by Christian Paolinetti

New York, January 31st (TradersHuddle.com) - Shares of Target Corporation (NYSE:TGT) are trading very close to calculated resistance at $51.29 with the current price action closing at just $50.33 placing the stock near levels that make it difficult to buy.

Target Corporation (NYSE:TGT) operates general merchandise discount stores in the United States. The Minneapolis, Minnesota company operates general merchandise and food discount stores and a fully integrated online business.

Target's current stock range is defined by current calculated support defined at $47.25 and by the resistance level at $51.29, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Target, as the stock is well above support, however, as the stock pulls back towards $47.25 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $51.29 then traders will get an opportunity to enter Target stock by establishing a position as the stock moves to a higher range.