TJX COMPANIES INC (NYSE:TJX) – A Strong Technical Setup in Retail

TJX COMPANIES INC (NYSE:TJX) has been identified as a potential breakout candidate by our technical screening process. The stock demonstrates both strong technical health and a favorable setup pattern, making it worth a closer look for traders.

Technical Strength

• High Technical Rating (9/10): TJX scores well due to a steady uptrend in both short and long-term timeframes. The stock has outperformed 80% of the market over the past year and remains in the upper half of its 52-week range.
• Strong Relative Strength: The stock ranks above 74% of its peers in the Specialty Retail sector, indicating consistent performance.
• Support from Moving Averages: TJX is trading above key moving averages (20-day, 50-day, 100-day, and 200-day), reinforcing the bullish trend.

Setup Quality

• Consolidation Pattern (Setup Rating 8/10): Recent price action shows TJX consolidating between $124.92 and $135.85, with reduced volatility—a sign of potential breakout readiness.
• Clear Support Levels: Multiple support zones exist below the current price, including a strong area between $126.21 and $128.02, providing a logical stop-loss level.
• Low Resistance Above: With minimal overhead resistance, a breakout could see TJX extend its upward move.

Trade Considerations

• Entry Point: A breakout above $129.08 could serve as a potential entry trigger.
• Exit Strategy: A stop-loss below $126.20 limits downside risk to about 2.23%.
• Volume & Liquidity: Average daily volume of over 6 million shares ensures good liquidity for trading.

For more details, review the full technical analysis report for TJX.

Our Technical Breakout Setups screener lists more stocks with strong breakout potential and is updated daily.

Disclaimer

This is not investment advice. The observations here are based on technical analysis at the time of writing. Always conduct your own research before making trading decisions.