Chart done on 30 minute and daily timeframes. Target reported fourth quarter earnings today and beat expectations on both earnings per share and revenue. Despite the earnings beat, the stock finished only 1% higher for the day, likely because the company’s profits were slimmer due to declining sales growth and rising operating costs. Data showed that more consumer visited Target stores in the fourth quarter, but many spent differently than they usually would. Sales in food and essentials were higher while sales in electronics and apparel declined as consumers manage their way through inflation, Target’s CEO noted that profit margins are typically higher on discretionary items so their declining profits for the quarter can be largely attributed to that.
Targets 25% decline in May of 2022 has really taken a hold on the stock. Since that day TGT has attempted a move above 180.00 three times and has gotten strongly rejected back down. The multiple rejections could be forming a triple top pattern, which is typically a bearish signal that could send shares lower. If you’re focused on the long term bullish side, you’ll need Target to break above 184.00 successfully to move back to 200.00-210.00. If you’re bearish then the two supports in focus are 160.00 and 137.00.