Chart of the Day: The Basing Period Has Started on TJX
Shares of the big discount retailer fell sharply from recent highs but found a bottom.
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It was a rough summer for TJX Companies (TJX). Basically the stock went nowhere during June and July, but following a “not so great” earnings report the name was punished severely.
From the recent highs TJX has fallen about 20%. Some would say that would qualify as a bear market. Yet in this day and age, those definitions can be a sharp contrast to what is really happening. Perhaps 20% is “the new correction.” We have seen stocks like TJX fall 20% or more and just roar back, where in the past those sort of moves were unlikely.
The chart of TJX is not bullish, though we do see some green shoots. It is far to early to call the correction complete, but a series of higher lows and higher highs from the recent bottom is a good start. MACD is now on a buy signal but RSI is still under 50, but improving.
Money flow remains bearish, though it is also showing some improvement. A couple of jumps above the moving averages above will shift the trend to at least neutral and most likely bullish, but it’ll take some time.
As the holiday season approaches, we expect to see more traffic coming to the TJX stores as they are wildly popular this time of year.
We like TJX in TheStreet Pro Portfolio and rate it a One, or “buy at any time.”
More Pro Portfolio:
- Charting the Markets: Leaving an Ugly September Behind
- 26 Signals Across 9 Portfolio Themes
- Weekly Roundup: Waiting for the Market to Show Its Hand
At the time of publication, TheStreet Pro Portfolio was long TJX.
