Target's tock (TGT) fell after the retailer warned that profits might take a hit from unsold inventory, cutting down operating profits forecasts from 5.3% to 2%, while expecting a profit margin of 6% in the second quarter of the year.
CEO Brian Cornell said the company is working to sell off the inventory surplus by the end of the quarter and will cancel some orders.
However analysts still expect the company to sell off excess inventory by August, in turn hurting profits throughout the next few months before turning strong profits in the school season.
The stock pared losses and closed down 2.31%, or 3.69 points, settling at 155.98 points, with trading volumes surpassing 33.3 million shares, above 10-day averages of 9.1 million shares, amid the dominance of the main downward trend in the short term, with negative pressure from the 50-day SMA, countered by positive signals from the RSI.
Therefore we expect more losses for the stock, targeting the support of 143.69, provided the resistance of 184.00 holds on.
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Expected trend for today: Bearish