Don't Ignore This Chart!

TJX Bucks the Selling Pressure


TJX Companies (TJX) is part of the S&P 500 and the Consumer Discretionary SPDR (XLY). It is also part of two growth ETFs (PWB and PXLG). Even though TJX is part of an economically sensitive sector, I would put them in a different category because they are known as an "off price" retailer for apparel and home furnishings. The stock sports a strong chart and is trading at its high of the year (2019).

TJX held up better than the market in October, but succumbed to selling pressure in November and December. The stock rebounded with the rest of the market in January with a big surge back to the early December high (red zone). After consolidating for a few weeks with a flat flag, the stock broke out and continued higher. TJX is currently above its rising 200-day SMA and appears poised to challenge its October high.

The indicator window shows RSI shifting from a bull range to a bear range and back to a bull range. The bull range is from 40 to 80 and the bear range is from 20 to 60. RSI moved back into the bull range when it broke above 60 in mid January. I would consider momentum bullish as long as RSI holds above 40.

On Trend on YouTube - Thursday, March 21st

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- Arthur Hill, CMT

Senior Technical Analyst,

Book: Define the Trend and Trade the Trend
Twitter: Follow @ArthurHill

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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