Chart of the Day: TJX Price Isn’t Budging, But Will Earnings Force a Move?
Is this a good spot to add more shares before the company reports quarterly earnings on Wednesday.
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A sideways consolidation for TJX Companies (TJX) is familiar. The stock has been in a range of $150-$165 for about three months, enough time to frustrate investors and traders as the stock moves through the channel. One thing is certain for now: The $150 level is firm. TJX has tested this spot on numerous occasions and is hovering nearby currently. This level has proven to be a good spot to add more shares in the past; so this could be your opportunity before the company reports quarterly earnings on Wednesday.
The chart shows slightly bearish trends with the candles in pink, that means cautiously bearish on the GoNoGo composite of indicators at the top of the chart. Recall on the last earnings period in May the same exact setup was presented and the stock ran up sharply, pulled back then ran again to a new all-time high. History doesn’t repeat but it often rhymes.
Money flow, at the bottom of the chart, is positive but pointing down. The moving average convergence divergence, as seen in the second pane, is on a sell signal while the parabolic Stop and Reverse is bearish. Momentum has clearly been extracted, so we wait to see how the market responds following earnings.
We like TJX in Pro Portfolio and rate it one, buy at anytime.
At the time of publication, the Pro Portfolio was long TJX.
