$TGT- Target Corp - (Earnings Sell off & Wedge Example)3/2/21
$TGT- Target Corp - 6.771% Decliner
Catalysts:
1. What I have personally noticed that after earnings beats:
If earnings are not exceptional, you will often see a sell off where there is profit taking, shorts covering and shorts entering. Combined with the chopiness we saw this past week and today with SPY and QQQ, the sell off shouldn't have came as too much of a suprise. Price was able to recover somewhat later in the session.
2. Target chose to withdrew 2021 fiscal guidance, "in light of the highly fluid and uncertain outlook for consumer shopping patterns and the impact of COVID-19."
Not worrisome to most but something worth noting that definitely did not help the sell off we saw on the open.
3. Price was already in a downtrend and broke the lower trendline of wedge shown in chart. A bearish signal.
A bullish note:
I see Target as a great buy at this price. This was a solid earnings beat with an increase in revenue and sales and a beat on EPS.
Earnings highlights:
-Target's 2020 sales growth of more than $15 billion was greater than the Company's total sales growth over the prior 11 years.
-Comparable sales grew 20.5 percent in the fourth quarter, reflecting comparable stores sales growth of 6.9 percent and digital sales growth of 118 percent.
-Total revenue of $28.3 billion grew 21.1 percent compared with last year, driven by sales growth of 21.0 percent and a 28.7 percent increase in other revenue. -Operating income was $1.8 billion in fourth quarter 2020, up 53.2 percent from $1.2 billion in 2019.
Analyst are also bullish. The majority of analyst ratings are all upgrades and increase in PT's anywhere from $195-$230.
-I'm going to be taking a look at some of the top daily gainers (may throw in some losers occasionally) of the day on their daily charts and posting them here throughout March. This is not advice. Just analyzing price action and patterns.
-I will try to vary the catalysts (analyst upgrades, earnings, clinical trial results, etc.) for the stock moving (if any) and the sector that the stocks are in.
-You'll notice I try to keep my charts as simple as possible. Black background and no grid. I will be focusing solely on price action, patterns, and support and resistance levels.
No moving averages, MACD, volume profiles, Bollinger bands, etc.
Please feel free to comment or leave suggestions. I am always looking to improve. Thanks.
