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.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
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.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
