Target Stock Plunges 3.69% to $92.44 Amid Sustained Selling Pressure

Current Trading Context
Target (TGT) declined 3.69% in the most recent session, closing at $92.44, marking its third consecutive daily loss. Over this period, the stock fell 5.63%, reflecting sustained selling pressure amid above-average volume of 12.9 million shares. This downturn positions TGT near critical technical levels warranting multi-indicator assessment.
Candlestick Theory
Recent price action exhibits bearish continuity. The last three sessions formed a series of declining candles with elongated bodies, indicating strong selling momentum. A key support zone emerges at $91.90–$92.00 (August 26 and September 2 lows), while resistance consolidates near $96.80–$97.00 (August 28 high and 20-day volume anchor). A decisive close below $91.90 may trigger accelerated downside, whereas reclaiming $95.50 could signal stabilization.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages (calculated chronologically) reveal a deteriorating trend structure. TGT trades below all three averages ($98.20 50-DMA, $102.10 100-DMA, $110.50 200-DMA), confirming a long-term bearish bias. The 50-DMA crossed below the 100-DMA in mid-August—a "death cross" suggesting prolonged weakness. Any recovery faces layered resistance near the 50-DMA and subsequently the 100-DMA.
MACD & KDJ Indicators
The MACD (12,26,9) shows sustained bearish momentum, with the signal line diverging below the MACD line since early August. No bullish crossover is evident. The KDJ oscillator (K:22, D:28, J:10) entered oversold territory, with the %J line at 10 indicating extreme selling pressure. While this hints at short-term exhaustion, bearish MACD alignment suggests limited reversal probability without confirmation.
Bollinger Bands
Volatility expanded sharply during the August–September decline, with the bands widening as price breached the lower band. The current close near $92.44 hugs the lower Bollinger Band ($91.80), signaling oversold conditions. However, persistent trading below the lower band without consolidation may imply continued downside. A mean-reversion toward the 20-period midline ($97.50) would require strong bullish catalysts.
Volume-Price Relationship
Distribution signals dominate. The August 20 sell-off (-6.33%) occurred on 33.2 million shares—the year’s highest volume—confirming institutional exodus. Recent declines (September 2: 12.9M shares; August 22: 13.7M) outpaced average volume (~6.5M), validating bearish conviction. Low-volume rebounds (e.g., August 27 rally on 6.5M shares) lack sustainability, reinforcing resistance strength.
Relative Strength Index (RSI)
The 14-day RSI reads 28, deep in oversold territory (<30). Historically, similar levels (e.g., April 2025: RSI 26) preceded minor bounces but failed to reverse the primary downtrend. This divergence between oversold signals and persistent selling cautions against premature bullish bets. A recovery above RSI 40 is needed to signal improving momentum.
Fibonacci Retracement
Applying Fibonacci levels to the April 2025 low ($87.35) and the February 2025 high ($158.46), key retracement zones emerge:
- 38.2%: $129.50 (breached decisively)
- 50.0%: $122.90 (violated in August)
- 61.8%: $116.30 (active resistance)
- 78.6%: $105.80 (secondary resistance)
Current price trades below the 78.6% level, targeting the swing low at $87.35. The 61.8% retracement now acts as a critical overhead supply zone.
Confluence and Divergence Observations
Confluence: The $91.90–$92.00 support aligns with the April 2025 low, 78.6% Fibonacci level, and Bollinger lower band—making it a decisive technical battleground. Breach here opens path to $87.35.
Divergence: Oversold RSI and KDJ readings conflict with MACD’s entrenched bearish momentum and volume-confirmed breakdowns. This warns that oversold conditions alone are insufficient for reversal confirmation.
Summary Outlook
Target exhibits entrenched bearish momentum across multiple timeframes, with no technical reversal signals yet. While oversold conditions suggest potential for tactical bounces, resistance at $96.80 (candlestick), $97.50 (Bollinger midline), and $105.80 (Fibonacci) caps upside. Sustained trade below $91.90 may extend declines toward the psychological $87.35 swing low. Volume validation remains critical; any recovery requires accumulation patterns to challenge dominant distribution.