TJX Stock Price is Headed to a New Price Channel

The stock price of TJX Companies (TJX), the leading off-price retailer, looks like it is headed to a new price channel. From 1988 through January 2003 prices remained in an a very clearly defined upside price channel (bounded by the green lines on the monthly price chart). But as of January 2003 prices slipped consistently below the long-term price channel. Thus it appears that a new price channel has formed.

The projected price channel has a slower rate of price increase than the old price channel but future prices will still be on the upside if prices remain in the new channel. The lowest projected January 2010 price would be $36 and highest projected price would be $45.

If prices stay in the projected channel, TJX will continue to reward most of its investors with profitable investing opportunities. The Complete Trading Model (CTM) analysis of all possible daily buy and sell combinations from January 3, 2003 through March 22, 2005 shows that 83.43 percent of all trades made money. So future trades should produce approximately the same percentage of winners.

Note: The price projections are made using strictly graphical techniques and interpretations. No predictions, knowledge or concerns about future earnings and/or management initiatives are factored into the projections.