Chart of the Day: Why This Overbought Holding Shouldn't Scare You Away
And there might be an 'ideal spot' to buy more.
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TJX Companies TJX is one of those reliable names that moves in stair-step fashion. No question, this stock is in an uptrend, and since we last spoke about the name TJX broke away from a nice base and fell to test the uptrend line. That is perfectly fine and expected when a stock is on the move.
The technicals are solid, with the GoNoGo in the top pane reflecting blue. That signals a strong bullish trend, though we do have a lower high in place and now a symmetrical triangle formation. What does that mean? Basically price is converging with lower highs and higher lows and is going to break the range very soon. We believe it is higher.
Money flow has been slowing down, for good reason. Big money managers are not interested in retail-type names at all-time highs, so they wait for the dips to buy more stock. The dip to the May highs (straight line, top chart) might be the ideal spot, let's call it $135 or so. As the holidays approach, TJX is in great position to take advantage.
We like TJX in TheStreet Pro Portfolio and rate it a Two, or "stockpile on pullbacks."
At the time of publication, TheStreet Pro Portfolio was long TJX.
