Hey Buddy, You Got A Dollar?
- Posted by Greg Harmon
- on October 3rd, 2013
I suspect this was the conversation between the speaker of the House and the President the other day, like many would have thought. What is maybe not so clear is what the President might do with that Dollar bill. Technical analysis suggests that many with a Dollar in hand might be wise to spend it on the Dollar Stores. The charts of Dollar General, $DG, and Dollar Tree, $DLTR, are poised to head higher. Take a look.
Dollar General, $DG
Dollar General, $DG, pulled back slightly last week and found support on Monday at the lower Bollinger band. It has bounced from there and is consolidating at 58 with a Measured Move higher to 60.25 on a break higher. The RSI is holding steady in bullish territory supporting more upside while the MACD has leveled and is approaching a cross to positive. Wait for a break of the trigger.
Dollar Tree, $DLTR
Dollar Tree, $DLTR, is in a similar set up. it has just broken above resistance at 58.60 and held it Thursday. The Measured Move higher on this one takes it to 62.70 and it also has support from the bullish RSI.
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Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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