Target Industry Analysis Essay

517 Words2 Pages

Target Corporation is one of the largest discounted retail stores. Target offers everyday essentials, attires, food amongst other differentiated merchandise at everyday low prices. In addition, it offers in-store amenities, including Target Café, Target Photo, Target Optical, Portrait Studio, Starbucks, and other food service offerings. In 1902 Target (TGT) was founded and incorporated in Minneapolis, Minnesota. The scope of this analysis is to determine Target's stock valuation by evaluating TGT's technical analysis and multiples. The technical analysis will describe the price trend and patterns. In doing so, six common indicators: Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), Aroon, Money Flow Index (MFI), …show more content…

The prices show a repetition of up and down throughout the years. At other times the price did not fluctuate and remained flat, for instance November – December 2015 and September – late October 2016. The Simple Moving Average (SMA) 20,50, 200 were used to compare the different terms to indicate the shifts and reversals for short term prices. Simple Moving Average (200) was an uptrend from the 2015 to 2018 and crossed above both SMA (20) and SMA (50) in April and June 2017. SMA (20) and SMA (50) also show a sideways trend. SMA (20) and SMA (50) crossover a few times. SMA (20) cross below SMA (50) indicating a price drop for short term prices in Nov 2015. Then SMA (20) crosses above SMA (50) mid- May 2016 another crossover below in September 2016 and a major dip in March 2017. Lastly, SMA (20) followed the uptrend and crossed above SMA (50) in November 2017. Short term prices are expected to increase and fall as it closely follows the wave of the price chart. The technical indicators and identified pattern are used to confirm the price trend base and forecasted prices along with bullish and bearish

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