We first looked at Target as a long-term play back in February 2012 in this blog post, with the stock trading at $55.18. Since then, a nice run has ensued, with the stock breaking out from a multi-year symmetrical triangle.
However, the stock is seeing some weakness today after reporting earnings. So, I wanted to follow-up on the thesis.
Updating the monthly chart, below, you can see the stock bumping up repeatedly against the upper Bollinger Band over the past few quarters. Generally speaking, this is a good sign of strength going forward, albeit at the cost of being quite stretched in the short-term.
More importantly, the major support trendline extended out (lower light blue line) dating back to the 2009 lows indicates that as long as Target holds $60 on this pullback it is likely to represent another quality entry as a long-term play, probably as we move into the summer months.
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