Is Target Closing in to Resistance?

Published on Monday, 02 July 2012 08:08 Written by TradersHuddle Wire

New York, July 2nd (TradersHuddle.com) - Shares of Target Corporation (NYSE:TGT) are trading very close to calculated resistance at $58.46. The stock ended the trading session at just $58.19, which is near levels that make it difficult to buy or start a position.

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 stock range is defined by its calculated support defined at $54.95 and by the resistance level at $58.46; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Target. However, as the stock pulls back towards $54.95 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $58.46 then traders will get an opportunity to enter the stock as it moves to a higher range.