The question on everyone's mind: Will TJX COMPANIES INC (NYSE:TJX) breakout?

TJX COMPANIES INC (NYSE:TJX) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:TJX.

Analyzing the Technical Aspects

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

We assign a technical rating of 7 out of 10 to TJX. In the last year, TJX was one of the better performers, but we do observe some doubts in the very recent evolution.

• Looking at the yearly performance, TJX did better than 85% of all other stocks. On top of that, TJX also shows a nice and consistent pattern of rising prices.
• TJX is part of the Specialty Retail industry. There are 121 other stocks in this industry. TJX outperforms 82% of them.
• TJX is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so TJX is performing more or less in line with the market.
• The long term trend is positive and the short term trend is negative. It is probably better to wait until this picture becomes clearer.
• In the last month TJX has a been trading in a tight range between 120.67 and 127.58.

Check the latest full technical report of TJX for a complete technical analysis.

How do we evaluate the setup for NYSE:TJX?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:TJX exhibits a 9 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, TJX also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 126.09. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 122.97, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How can NYSE:TJX be traded?

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

More breakout setups can be found in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.