Target Hits The Mark For Q2, But Surrenders Huge Gains

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Target Corporation TGT shares were trading lower by $0.30 at $80 in Wednesday's volatile session. Earlier in the session, the issue rallied all the way to $84.62 on the heels of a better-than-expected Q2 earnings report ($1.22 vs. $1.11 estimates) with inline sales ($17.427 billion vs. $17.40 billion). The company also guided higher for Q3, as well as FY 2015.

The current high, which was in between a pair of highs from July 20 ($84.98) and July 21 ($84.25), was shy of its all-time high that was made on June 23 at $85.81.

After reaching that elevated level, profit-takers swarmed the issue, and for good reason. It was only five days ago the issue bottomed at $77.09. The ensuing decline took Target beyond Tuesday's close ($80.30) and did not find support until it reached $79.12.

It did manage a brief rebound to $80.93 before sellers re-entered the marketplace and nudged the issue back to the $80 level.

Today's violent price action is taking place on much heavier than average volume. With roughly two hours remaining in the session, over 16 million shares have changed hands compared with its 20-day average of 4.7 million.

Editor's note: At time of publication, shares traded at $80.50, up $0.20.