Target in a very Tight Range

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of Target Corporation (NYSE:TGT) closed the trading session at $50.64 placing the price action in a very tight range, given that calculated support is set at $48.23 and the calculated resistance based on an algorithm of peaks and troughs is set at $51.08

Target Corporation (NYSE:TGT) operates general merchandise discount stores in the United States. The Minneapolis, Minnesota company operates general merchandise and food discount stores and a fully integrated online business.

Target's stock price action indicates that both sellers and buyers are materializing very close to each other, which is indicative to a momentum building area, as the stock can resolve by breaking out of the tight range that developed.

Traders wanting to establish a position should place close attention to Target's price action, as any movement outside its predefined range of $48.23 and $51.08 could grab the attention of momentum buyers, looking for a big movement in the price of the stock. Traders need to be aware that tight range resolution works both ways, hence, a move below support at $48.23 could spark above average selling. A tiered approach can be a good way to approach starting a position in Target's, by establishing a starter position while the stock is in the tight range, and then adding to the position as it breaks and closes above resistance.