The TJX Companies, Inc. (NYSE:TJX) Is Close To Its Initial Target Of $55.50
Denver, CO, 08/21/2013 (Avauncer.com) – The TJX Companies, Inc. (NYSE:TJX) (Closed: $54.24, Up: 6.88%) opened with a huge gap up on the news of its posting its quarterly result beating the market expectations by a good margin. The stock didn’t face any selling pressure even at the higher levels and closed near the day’s high. The volume responded too, which at 8 million was substantially higher than the average of 3 million. The day’s price action created a very bullish Marubozu candle.
The stock has one of the strongest charts in the stock universe. It has moved in a secular bull market since 1995. It had only two minor interruptions as such – the first came in 1999 – 2000 when it fell from $9.25 to $3.50 and the second came in 2008, when it fell to $8.9 from the high of $18.76. Since that 2008 bottom of $8.90, no corrections of that scale have ever affected the stock. This rally however is clearly subdivided in 5 legs – 3 rallies & 2 corrections. The rallies are from $8.90 to $24.25, from $19.78 to $46.67 and from $40.08 to $54.41 till now with no sign of weakness yet. The corrections show that his current rally could be the 5th wave. That gives us targets of $55.43, very close already and $76.85 in the coming months. The monthly trendline holding the rally since August 2011 would give support to any correction and stands at $49 levels currently.
In the short term the price has got support from the channel perfectly containing the entire rally from the last major swing low of $40.08, made in November 2012. The price hit the lower boundary of this channel on Monday and technically is the biggest reason for the bounce on Tuesday.
Investors should keep an eye on the level of $55.50 and if the price manages to breach it convincingly, invest in it on every dip.