Swing Trade Idea (TGT) 2-2-2021
Our bullish trade for Tuesday, February 2nd is Target Corp (TGT). TGT is part of the Discretionary Sector (XLY). XLY has experienced a 5.6% gain in the last month and its 6M trend has been bullish since November 4th 2020 and its 1M trend turned from bearish to neutral yesterday.
TGT has been on a strong bullish trend and recently pulled back to oversold levels providing a good risk/reward for a long entry. Its 6M trend turned bullish on Jan 28th and with a technical score of 8 (out of 10), TGT is a strong stock that will likely move higher.
As a stop loss, if TGT were to trade below $176 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves above $7.10.