Dollar Stores are Rising With the Dollar
- Posted by Greg Harmon
- on July 1st, 2013
The dollar stores rebounded significantly from their November through March Base, but recently have been either stalled or pulling back. That is now changing. Take a look at Dollar General, $DG. After pulling back to the 200 day Simple Moving Average (SMA) to start June, it has been building an ascending triangle since. Monday it tried to peek over the top but failed. But it looks to have some support to get there. The Relative Strength Index (RSI) is trending higher and the Moving Average Convergence Divergence indicator (MACD) is also turning up and crossed to positive. The Measured Move on the break higher takes it to 56.40.
And Dollar Tree, $DLTR, is just as good. In fact it is breaking resistance of an ascending triangle that formed with the 50 day SMA as the base Monday. The Measured Move takes it higher to 55. The RSI is running higher and bullish and the MACD is turning up.
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Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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