TJX Companies, Inc. operates as an off-price apparel and home fashions retailer across the United States, Canada, Europe, and Australia. The company functions through segments like Marmaxx, HomeGoods, TJX Canada, and TJX International, utilising both physical stores and e-commerce platforms.

TJX’s stock climbed to new heights linked to an impulse wave following the March 13, 2025 low. A short-term rally towards $148.10 is anticipated to complete a diagonal in wave ((1)) of V, maintaining above the August 26, 2025 low.

From the March 2020 low of $32.72, a bullish sequence began. The first impulse peaked at $77.35, while the second hit a $53.69 low as a 0.5 Fibonacci retracement in 2022. Successive waves suggest further highs, mandating caution at current levels.

In the third wave, the first peaked at $69.77, the third reached $121.13, and it is anticipated to continue its upward trajectory beyond $128. Internal waves suggest continuous upside movement, with potential corrections offering further buying opportunities.

Expectations from September 6, 2025, outlined ongoing bullish momentum. TJX is positioned for additional upward movement before potential corrections, offering prospects for those exploring retail sector opportunities.

We see the current rally in TJX pushing towards the $148.10 target, which would complete a pattern that began earlier this year. The Commerce Department’s recent report showing a 0.8% rise in September 2025 retail sales supports this momentum in the consumer sector. For traders, this suggests considering near-term call options, like those expiring in November 2025, to capitalize on this expected final push.

As long as the stock remains above its August 26, 2025 low, the bullish outlook remains intact. This environment could be favorable for selling cash-secured puts with strike prices below that key support level, which would generate income while we wait. This strategy aligns with the historical trend we saw in 2022-2023, where off-price retailers gained traction as consumers remained value-conscious amid inflation.

The primary strategy we are watching is not just the immediate rally, but the corrective pullback expected after the $148.10 area is tested. This anticipated drop should be viewed as a significant buying opportunity against the March 2025 low. Preparing to enter longer-dated positions during this expected correction is the key takeaway.

Once that correction unfolds, we would look to purchase longer-dated call options, perhaps for January or March 2026. This allows ample time for the next major impulse wave higher to develop. TJX’s strong fundamentals, including a 12% revenue beat reported in its last earnings call in August 2025, provide a solid backdrop for this longer-term bullish stance.

We note that current implied volatility for TJX options is hovering near its 52-week average of 24%, meaning option premiums are not excessively inflated at this time. This presents a reasonable cost for establishing positions. However, any break below the trendline support from the March 2025 low would require an immediate reassessment of this outlook.