Target Stock Price hit 52 week low; Will the correction continue?

• Target Stock Price (NYSE: TGT) fell 17% in the previous month. 
• The TGT Stock Price break down the crucial support of $140.00
• Target Stock Price faced rejection from 200 day EMA and also dropped below 50 day EMA.

Target Stock Price (NYSE: TGT) fell 17% in the previous month and broke down the crucial support of $140.00. 

From the past one year, TGT Stock price is consolidating in the wide range between $140.00 to $180.00. In the recent fall the range expanded downward which hurted the sentiment of the long term investors. 

Target Corp released the quarterly earnings on May 17, 2023. It reported an EPS of $2.05 and revenue of $25.322 Billion. Whereas, the estimates were $1.766 and $25.262 Billion. 

Target beat the EPS by 16.06% and revenue by 0.24%. Despite meeting the estimates, Target Stock reacted negatively and prices showed a sharp fall in a short span of time. The selling volume also indicates fear and some geninne investors might have exited from higher levels. 

The 50 and 200 day EMA sloping down shows downtrend but the current price has gone far away from EMAs. So, short term bounce is possible to test the EMA. 

Target Stock price closed the previous session at $133.81 with an intraday decline of -2.92%. The market capitalization stands at $61.76 Billion.

Target Stock price might enter consolidation

The downfall in the Target Stock price halted near $125 and prices showed a minor bounce. But, the previous breakout level $140 turned out as a hurdle and buyers are again faced rejection.

If the buyers are able to push the TGT Stock price above the $140.00 then a short covering rally might trigger. However, Target Stock Price will gain momentum when it breaks the $160.00 hurdle. 

On the other hand, if the TGT stock remains below $140.00 then more downside is possible. However, the stock has corrected a lot and might consolidate for some time before deciding the further direction. 

The technical analysis suggests, TGT Stock price price is in down trend but the recent low at $25.00 is likely to act as strong support in coming days. 

TGT Stock formed reversal candle on weekly time frame

TGT Stock Price formed a bullish reversal candle on the weekly timeframe. It rose 5.37% in the previous week and buyers are trying to recover the losses of recent downfall. 

The MACD displayed a positive crossover and histogram bar is on expanding upward. It indicates prices are in the recovery mode and bullish trend reversal is possible. 

The RSI at 41 pointing down denotes price is near to neutral territory and likely to enter consolidation.

Conclusion

Target Stock Price (NYSE: TGT) fell 17% in the previous month and hit a fresh 52 week low at $125.08. However, the TGT Stock prices showed a minor bounce but $140.00 turned out to be a hurdle. 

The technical analysis suggests, TGT Stock price is in bear grip but till prices hold $125.00 it is expected to trade in narrow range consolidation.

Technical levels

Resistance levels: $150.00 and $160.00

Support levels: $125.00 and $120.00

Disclaimer

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