DLTR closes lower for the 3rd day in a row
Dollar Tree Inc. (DLTR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, DLTR finished the month 0.72% higher at 93.35 after losing $0.60 (-0.64%) today, significantly underperforming the Nasdaq 100 (1.78%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (DLTR as at Jul 31, 2020):
Friday's trading range has been $1.47 (1.57%), that's below the last trading month's daily average range of $2.18. 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.
One bullish candlestick pattern matches today's price action, the Takuri Line.
After trading as low as 92.24 during the day, Dollar Tree found support at the 50-day moving average at 92.43. The last time this happened on May 11th, DLTR actually lost -2.03% on the following trading day.
Although the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Down" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Dollar Tree. Out of 46 times, DLTR closed higher 50.00% 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 63.04% with an average market move of 2.20%.