DLTR closes within prior day's range after lackluster session
Dollar Tree Inc. (DLTR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
DLTR finished Thursday at 78.14 gaining $1.77 (2.32%) on low volume, strongly underperforming the Nasdaq 100 (5.72%). 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 Mar 26, 2020):
Thursday's trading range has been $3.48 (4.53%), that's below the last trading month's daily average range of $7.06. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for DLTR. Prices continued to consolidate within a tight trading range between 71.32 and 83.76 where it has been caught now for the whole last trading week.
The share managed to close back above the 20-day moving average at 77.66. When this moving average was crossed above the last time on Tuesday, DLTR actually lost -4.13% on the following trading day. The market found buyers again today around 76.06 for the third trading day in a row after having found demand at 76.13 in the prior session and at 77.03 two days ago.
While the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 83.76 where further buy stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for Dollar Tree. Out of 129 times, DLTR closed higher 58.91% 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 57.36% with an average market move of 0.81%.