Individual Consumer Discretionary stock chart patterns from Suri Duddella.

Yesterday we discussed the Consumer Discretionary sector and highlighted potential breakout chart patterns in the Consumer Discretionary Select Sector SPDR Fund ETF (XLY) and the S&P Select Consumer Discretionary ETF (XLF).

Both exchange trade funds (ETFs) surged early in 2019 before consolidating into a Symmetrical Triangle Pattern.  is currently trading in a Symmetric Triangle pattern. As we noted, Symmetric triangles can be characterized as areas of indecision. Market price-action pauses during these indecision periods as the forces of supply and demand nearly become equal. Volume tends to be diminished during this consolidation phase. Eventually, a there needs to be a resolution through a breakout or breakdown from the upper or lower trendline.

While the breakout can occur in either direction, there is usually a bias towards the existing trend that was present prior to the consolidation phase.  Here are two Symmetric Triangle set-ups in individual Consumer Discretionary stocks.

TJX Symmetric Triangle Pattern

TJX Companies Inc. (TJX) traded sideways from October 2018 through October 2019 between $41.50 and $56.60 as it forms a Symmetric Triangle pattern (Ascending Triangle). Price traded above $55.11 signaling a long breakout trade. The first profit target is $64.50 with a stop-loss placed below $54. The second profit target $70. While the long entry has already been signaled, there is plenty of upside in this trade as TJX is currently trading around $60.

tjx

TGT Symmetric Triangle Pattern

Target Corp. (TGT) formed a Symmetric Triangle pattern from October 2018 to September 2019 between $68 to $98.39 on its daily chart.

A close above $82 signaled a breakout trade with targets set at $101 and $120. Currently, prices reached the second target zone.

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Find more of Suri’s work at surinotes.com.