Very important day for Target, as it breaks a key 50-year trendline after it has already lost -50% from ATH.
Now crossing a line in of itself is not a big deal. However, how it breaks and what structure it forms after the break matters a lot. This is the 3rd time since 2017 it has tested the trend line. The last time it broke in 2008 it lost 50% of its value. This time may be no different.
The nice thing about Key areas is the risk-reward. Bulls may want to buy, while others may want short.
From my perspective taking everything into consideration (Message of the market, economy, retail, money expansion etc..) I would take the short and force the burden of proof on the bulls to push the price back into structure.
From a different perspective, TGT breaking this key area is bad JUJU for the economy. The consumers may be in trouble along with the unemployment rate.
Now crossing a line in of itself is not a big deal. However, how it breaks and what structure it forms after the break matters a lot. This is the 3rd time since 2017 it has tested the trend line. The last time it broke in 2008 it lost 50% of its value. This time may be no different.
The nice thing about Key areas is the risk-reward. Bulls may want to buy, while others may want short.
From my perspective taking everything into consideration (Message of the market, economy, retail, money expansion etc..) I would take the short and force the burden of proof on the bulls to push the price back into structure.
From a different perspective, TGT breaking this key area is bad JUJU for the economy. The consumers may be in trouble along with the unemployment rate.
Note
BINGO!Note
Target is down another 3.5% today.Trade active
The first warning sign (CRACK!) was triggered over a year and a half ago when I first posted this chart.Since then we got the second decisive CRACK! Now the 50-year rising wedge has broken!
TGT is now down over 60% from its all-time highs. Can it lose more? Absolutely!
Is it going to Zero? NO!
Is this bad for retailers? YES!
Is this bad for the overall economy? YES!
No one should buy TGT thinking it will return to new all-time highs. Will there be long trade setups? yes at some point.But your expectations should be set accordingly.
Real Macro Economic Investing
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Real Macro Economic Investing
patreon.com/Realmacro
patreon.com/Realmacro
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.