TGT is bearish; chart rollover and negative technical indicators suggest further downside.

You've got Target as your first pick here. I am a regular at what I call the black hole as it's just up the street here from Schwab Network. But how are you looking at Target, Don?

Yeah, you know what? I know I know that Target very very well. So, uh, this one's actually going to be a bearish trade. The chart rolled over, right? Um, it's rolled from 170 down to the 155.

I think at this point, it's only a matter of time before they uh, they come. that is the sellers start coming for uh for Target and that's enough for me to want to purchase an out- of the money spread.

So in target, I'm going to go all the way out to the D18 options expiration and I'm using that to give myself what 77 days, little bit of time. I'm going to buy the 145 puts. I'm going to sell the 135 puts against it.

It's a full $10 wide spread done for a $260 debit.

All right, Rick. So, as we look at the technicals here for Target, it is up almost 60% year to date, but looking for a small pullback here. Well, 145 caught my eye. The reason why is that was a gap level and also a subsequent low.

So that's this green line right here would be the upper strike for that trade that Don was discussing here.

Uh in the meantime though, we've been in a very uh rather tight range recently. So we had an old low point here at around 160 and then that became the ceiling. Then the floor of the range was around 154 155 or so.

Uh the broader picture is that we've had an upward sloping white trend line here. A shorter term downward sloping trend line as well uh in the recent days. So a sideways grind is what traders have been seeing in uh target shares recently here.

So we also have a confluence of our two moving averages. Our 5-day and our 21-day exponential moving averages between 156 and 157 or so.

So I do notice though that the trend does seem to be slipping a little bit here. Our faster 5-day is below its slower 21-day counterpart. Here we have our 63-day in gold representing one quarter. 15149 is where that one comes in.

If we do start to break below our trend line, that could be another point to watch.

RSI also exhibiting some more bearish behavior. We are below the 50 midline. We have a downward sloping trend line in play. We are on pace to make new relative lows. So perhaps uh uh the signs are pointing more toward a a breakdown based on these uh indicators.

So far our volume profile study shows that we have a node here 153 to 166. Once we do start to get below that if if we do I I should say uh there's a couple very small pockets of activity here around 140 and 148 or so.

Uh but nothing really too significant until down here near 130.

All right. And today we are looking at Target uh down about 7/10en of a percent here.