Target Puts in a Bottom

I stated on my prior chart analysis that Target's chart was bearish as it was decending below the sideways channel. But today, the stock reversed the down trend on healthy volume and has put in a bottom. With JC Penny and Kohls report robust earnings and not being affected by the so called "market slow down", I believe Target, should do just as well. On a superficial glance, Target is always booming with business and something about the store makes me want to spend money there.





Let's consider this chart:


Target has broken out above the bottom channel where it spent the last few weeks below it. Volume for the past few weeks have been strong and robust and the momentum line is threatening to break above "neutral". It would all depend on earnings of this company but since this company is probably one of the reasons why Walmart is doing so poorly, I wouldn't be surprised to see some healthy earnings and upbeat guidance when it reports earnings on May 23 2007. Analysts estimate EPS of $.71. It will be the guidance and issuance of statement that the "no foreseeable slow down in sales are foreseen".

Also, Target scored an upgrade to Buy from Hold by AG Edwards. I am sure there is more to come.