Is Target Resistance Ahead?

Published on Thursday, 27 December 2012 06:12 Written by TradersHuddle Wire

New York, December 27th (TradersHuddle.com) - Target Corporation (NYSE:TGT) closed the trading session at $59.21, near its 200 day moving average set at $60.50. Target's stock action is below this level, which makes the stock difficult to be bought, as it will face resistance as it approaches its 200 day moving average.

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.

Latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $60.14 and resistance at $64.50. Traders should closely monitor these levels, as they provide great reference points for the latest price action in Target.

If traders want to establish a position on Target, given that resistance could materialize as the stock approaches its 200 day moving average, a trade might materialize as the stock manages to break this important level. After the breakout, the 200 day moving average could be used as support going forward. However, until the break materializes, traders need to exercise patience.