Rush Of Volume Pushes T.J. Maxx Stock Higher

I just spotted a signal from one of my most reliable indicators. Let me take you through how I spotted it and what it could potentially turn into.

Finding a stock with strong upside momentum can create a winning trade environment. When you know conditions are right for trading, you can set up a trade that fits your personal risk and profit profile. While trading always includes a risk of loss, our goal is to look for trades that help to manage as much of that risk as possible.

This is why I like On Balance Volume Charts and especially when they highlight patterns like we are seeing in TJX Cos., Inc. (TJX) that you can see on the chart below.

We can see the OBV indicator is sloping up on that chart. To see how the OBV Indicator works, click here. What is important to us is that it is a confirmed BUY signal for TJX.

If we were to consider trading TJX we would use the Hughes Optioneering calculator to figure out the potential returns from a call option purchase.

We have had success with the 1% Rule to find the optimal strike price for our call option. To see how the 1% Rule works, click here.

Looking at the prices for TJX on 2/15/2024 before commissions on this specific call option, the calculator analysis below reveals if TJX stock increases 5.0% at option expiration to 102.64 (circled), the call option would make 59.9% before commission.

If TJX stock increases 10.0% at option expiration to 107.53 (circled), the call option would make 127.0% before commission and outperform the stock return nearly 13 to 1*.

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Wishing You the Best in Investing Success,