Going shopping at your favorite retail outlets can be enjoyable, though it’s usually not profitable. Shopping for bargains in the retail niche can be highly lucrative, however, if done correctly.
Due to the spread of the novel coronavirus, the brick-and-mortar retail sector has struggled lately. Stay-at-home mandates have presented persistent fiscal issues for these companies.
But let’s not lump all retail companies together. They’re all unique, and some have fared better than others during the coronavirus crisis. Today’s big stock charts will hopefully provide some insight into three interesting names in the retail market.
Macy’s (M)
For decades, Macy’s (NYSE:M) has been a mecca for shopping addicts. The outbreak of the coronavirus has made it difficult for this company to remain profitable. However, Macy’s CEO Jeff Gennette remains optimistic about the company’s prospects. “We are going to emerge out of this as a smaller company,” said Gennette. He added, “We don’t really know what the ramp back looks like.” Can the M stock chart provide us with some clues for shareholders?
- A double-bottom chart pattern has formed with the bottom at approximately the $5 level. M stock has bounced off there twice already, so another bounce might be in the cards.
- There’s a large and widening channel in progress. Unfortunately for the bulls, the channel is trending to the downside.
- The stock is slightly above the 20-day moving average, so that’s positive for the bulls. Still, they really want to see M stock move closer to the 50- and 200-day moving averages.
Gap (GPS)
You might know Gap (NYSE:GPS) as an apparel niche store with international presence. But did you know that GPS stock is a dividend king with a robust 10.72% annual forward dividend yield?
Only time will tell whether Gap will continue to be able to offer such a generous dividend. In the meantime, we can examine the second of our big stock charts and decide for ourselves whether GPS shares are a bargain right now.
- The GPS stock price just can’t seem to clear the $9 level. It’s reached that price level three times recently but couldn’t stay above it.
- Fortunately for the bulls, the stock is still above the 20-day moving average. However, Thursday’s red candlestick and strong volume indicate that the bears are putting up a vigorous fight here.
- In the bulls’ favor is the inverse head-and-shoulders pattern in the chart, which tends to be a bullish configuration. Still, the bulls need to take back control and print some green candlesticks soon.
Target (TGT)
There’s a wide variety of items for sale at Target (NYSE:TGT), and this company is one of the biggest names in the retail space. Caution might be advised concerning TGT stock, though, as some of the store’s workers may be going on strike.
Pandemic-related issues, along with the possibility of a workers’ strike, are developments worth watching if you’re interested in owning TGT stock. It’s also worthwhile to check the chart in order to get an idea of the stock’s recent price action. Let’s take a closer look at the last of our big stock charts from the week.
- The price movement in TGT stock shows a recent higher low. The bulls will want to create a higher high as well. This stair-stepping movement can act as a springboard to much higher prices.
- It’s interesting that the stock landed right on the 200-day moving average on Thursday. The bulls definitely want to keep TGT stock above that important line.
- We can detect a symmetrical triangle pattern on the chart. This suggests that the price movements are narrowing, which could be a setup for explosive action at some point.
As of this writing, David Moadel did not hold a position in any of the aforementioned securities.