Target Approaching Important Moving Averages

Published on Tuesday, 31 August 2010 05:32 Written by Christopher Lynn

New York, August 31st (TradersHuddle.com) - Shares of Target Corporation (NYSE:TGT) closed the trading session at $50.80 near its 50 day and 200 day moving averages currently set at $51.16 and $51.71 respectively. Target's price action is below these important levels, which makes the stock difficult to buy, as there will certainly be resistance as it approaches these important moving averages.

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 $49.37 and calculated resistance at $52.59. These levels should be watched by traders, as they provide insight into the latest price dynamics in Target shares.

Traders should evaluate their options if they want to establish a position on Target given the heavy resistance expected near the 50 and 200 day moving averages. A trade might be evident as the stock manages to break these moving averages, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will closely evaluate are the ones defined by the peak and troughs algorithm that provides great price level reference points.