The Dollar Stores Are No Bargain — Yet
InTheMoneyStocks.com | Mar 14, 2018 02:17PM ET
Dollar Tree (NASDAQ:DLTR) and Dollar General (NYSE:DG) have long dominated the discount variety retail space. Both of these stocks topped out on the charts in late January, 2018 and have fallen sharply from that peak. It should be noted that both retailers have struggled to gain any traction back to their former highs. When stocks show weak relative strength compared to the major stock indexes, it indicates potential downside to come.h3 Support To Watch/h3
Dollar Tree peaked out on January 31, 2018 at $116.65 a share. On Wednesday, DLTR traded lower by $1.39 to $93.03 a share. So far, the stock is trading just above its daily 200-day moving average, but a close below it would likely signal further downside. For now, Dollar Tree should have major support around $83, which is where the stock broke out in September, 2017. Often, prior breakout levels will serve as major support when retested. This is where I would be interested in the stock on the long side. Until this level is reached, Dollar Tree is no bargain.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.