Evaluating a price trend can be efficiently done with the use of key moving averages. In fact, the key simple moving averages can provide insight into the trend and strength of the trend. What are the key moving averages? The 50-day, 100-day, and 200-day simple moving averages. Target stock is currently trading above all of its key rising simple moving averages as well. As an added bonus, the stock is also trading above its rising 20-day simple moving averages. Target’s moving averages are signaling a strong uptrend in the stock.
A relatively simple way to gain perspective into investor sentiment is through the use of the options market. More specifically, taking a look at the implied volatility and implied volatility skew levels of Target options may help determine if investors are bullish, neutral, or bearish. The implied volatility of Target options is at 17.04 percent today which coincides with a zero percentile over the last 30 trading days and zero percentile over the last 90 trading days. What does this mean? This means that investors or traders are buying a very small amount of call and put options contracts, as compared to the last 30 and 90 trading days.
The implied volatility skew of April and May put and call options is at about average. So as of today, there is an average demand from call and put buyers or average supply of call and put sellers, all neutral over the next two months. Investors are buying a minimal amount of call and put option contracts and are leaning neutral over the next two months.