Chart of the Day: Checking In on an 'Old Friend'
What do the technicals look like for this big retailer as we contemplate bringing it up to the portfolio?
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TJX Cos. TJX, the holding company for TJ Maxx, Marshalls, HomeGoods and other stores, just finished another very successful holiday season. But shares of the company have recently been pulled down due to worries over consumer spending.
Retail sales from January and February were weak as some consumers seem to be trading down from high-end purchases to lower-end stores. Not to worry, though, TJX is often a beneficiary of that trade down. Their merchandise is very good, available and moderately priced.
We recently added TJX once again to TheStreet Pro Portfolio Bullpen, and the recent slide from the $120s gives us a good look to make sure there is a low in place. That looks pretty firm around the $110-115 level. Money flow remains strong and bounced up from the zero line.
Stochastics (momentum, pane 4) is turning back up, while MACD (moving average convergence/divergence) (pane 2) is not on a buy signal yet but is approaching it. There is resistance above with the 100-day and 200-day moving averages overhead.
No question the chart is still bearish, as the candles are purple, which reflect bearish on the GoNoGo composite of indicators. Further, volume trends are bearish, which tells us the stock remains in some form of distribution.
We'll be looking for a basing period in the range mentioned above, and may decide to pull the trigger very soon to add a position.
At the time of publication, TheStreet Pro Portfolio had no positions in any securities mentioned.
