Dollar Tree Remains Tight as the Market Tanks

NASDAQ:DLTR   Dollar Tree, Inc.
The broader market has been super volatile lately, which makes the tranquil behavior of one retailer interesting: Dollar Tree.

Notice how the discounter plunged on May 18 after TGT poor quarterly results. Also notice how quickly it rebounded after its own quarterly numbers handily beat estimates on May 26. The stock has barely moved since then – despite the S&P 500 diving to a new 18-month low. That kind of tight price action may be consistent with investors building longer-term positions.

Next, the June 17 candle tested but closed above the November high. Has old resistance become new support?

Third, May’s low occurred at the 200-day simple moving average (SMA). The current consolidation is taking place along the 100-day simple moving average (SMA) while the 50-day SMA squeezes down from above. A break above it could make traders think its trend is turning positive again. They may also watch the trendline as potential resistance.

Finally, DLTR just completed a bullish inside week. That may suggest bulls are starting to take control.

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