Draw a Red Circle Around Target's Rebound

Shares of discount retailer Target (TGT) have begun to stabilize after last month's brutal earnings-inspired breakdown. Back on Feb. 21, the stock opened with a massive breakdown gap that dropped shares over 12%. Volume that day reached its heaviest level in years. This major breakdown continued into March, but last week the bearish action showed signs of easing. TGT is now working on its fourth straight gain and may have finally bottomed.

At last week's low, TGT had fallen over 33% from its post-election highs. This steep decline drove shares past multiple layers of support, including the 2015 and 2016 lows. Earlier this month, the 2014 lows ($54.65) came into play as TGT's weekly MACD indicator fell to its deepest oversold reading since the 2009 lows. Downside pressure eased dramatically last week as support near the $54.50 area showed some strength. With TGT still in deeply oversold territory, a very low-risk buying opportunity could be developing....85 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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