DLTR finds buyers again around 88.01
Dollar Tree Inc. (DLTR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DLTR ended the week 1.77% higher at 88.68 after losing $0.59 (-0.66%) today, underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DLTR as at Feb 14, 2020):
Friday's trading range has been $0.93 (1.05%), that's below the last trading month's daily average range of $1.44. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DLTR. Prices continued to consolidate within a tight trading range between 88.01 and 89.63 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Hanging Man.
Prices are trading close to the key technical support level at 87.75 (S1). After having been unable to move lower than 88.04 in the prior session, the share found buyers again around the same price level today at 88.01. The last time this happened on Monday, DLTR gained 1.16% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 89.63 where further buy stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Dollar Tree. Out of 289 times, DLTR closed higher 52.60% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.82% with an average market move of 0.82%.