Chart of the Day: A Close Look at TJX Ahead of Earnings
The dips down over the years have been great buying chances. But one word of caution as the retailer prepares to release earnings this week.
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TJX Companies TJX may be one of those companies you just buy and leave alone for years. It has been a consistently strong stock for years. Looking at the weekly chart (not shown), we are treated to seeing a very strong and upward-sloping uptrend line. Even the dips down over the years were great buying chances. We recently saw one of those on the daily chart (shown), and that has launched the stock.
We can plainly see the double bottom on the chart when TJX turned bullish. This quickly shifted trends to higher highs, higher lows and is now very bullish on the GoNoGo composite of indicators. Stochastics are strong (momentum) and actually embedded, which means dip buyers are stepping in at every chance they get. Money flow is also very solid and well above the zero line.
One word of caution. Implied volatility is often quite high for TJX around earnings, and while the trend is bullish, the earnings report, if good, is often seen as a reason to sell the news. Will it happen again like in May? It's possible, so be on the alert if this pulls back for another ideal buying opportunity. The prior uptrend was halted afterward.
We like TJX in TheStreet Pro Portfolio and rate it a Two, or "stockpile on pullbacks."
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At the time of publication, TheStreet Pro Portfolio was long TJX.
