The paper is close to the ATH (all-time high). It is very powerful! Although it fell almost 15% in August when the whole market collapsed, DLTR hit a new ATH in two weeks! Since then, it has risen another 15%. We can hardly find a week without new ATH.
And what's the situation right now? Last week the price exceeded the previous high. In the last five sessions it formed a narrow base between 79 and 81. That's absolutely bullish. So the long positions are held. If the price goes out to a new high again, the uptrend will likely proceed. But look out!
And what's the situation right now? Last week the price exceeded the previous high. In the last five sessions it formed a narrow base between 79 and 81. That's absolutely bullish. So the long positions are held. If the price goes out to a new high again, the uptrend will likely proceed. But look out!
On one hand, the price is close to the top of a rising wedge, which is a reversal pattern with sharp correction generally. So in case of increasing long position above 81, tight stop-order is advised! On the other hand, if we look at the weekly chart, we can see, that DLTR nears the top of the rising channel and it may limit the potential of the raise. I have to admit that this limit doesn't necessarily mean the end of the current upwave. The movement of this stock is specifically well-balanced (see the weekly chart) and a similar price-action is easily imaginable again.
To examine the bearish side as well: below 79 the course will likely test the trendline at 76. Out of the wedge, the 50-day moving average and the last local minimum together (the 72-72.5 zone) may hold the price. Below this support 70 and finally 64 (65) could stop the sellers. Latter support is the actual level of the long-term trendline (the bottom of the weekly channel).
If the market (s&p) breaks out of its range, then DLTR will probably lead the raise. (Moreover, it marches incessantly without the help of the broad market.)
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