Today I’ll look at a long-term chart of a major retailer: Target stock (TGT). One way to keep track of a stock’s rate of change and/or trend is to use long term log trend charts. Basically, if a security stays above/below a long term trend line then the trend is alive and well.
However, when a trend line is overcome either above or below then it’s time to take notice. Case in point: Target stock (TGT).
Here is a long term stock chart of Target (TGT). Also note that it is a monthly chart. As of the 05/31/2016, we saw TGT’s first monthly close in over 40 years below its long term log trend line. In my opinion, this is not a bullish indication for the future of Target (TGT).
The concern is that the stock may be carving out a top (and this is a warning). So the bulls need to see a major recovery during the summer months or the stock will stay on alert.
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