Dollar Tree - Technical Analysis

[surfingthetrend]

For those who believe that we are experiencing only a small correction to the main trend, Dollar Tree (DLTR) may signify a promising entry. This company, which represents a low-cost shop concept, has gained high visibility and had an exponential growth, about 600% since 2008.

This title is technically interesting, being guided by the basic technical signs: supports, resistances and trendlines. This trendline, which has guided a big part of this ascendant path, maintains the consistency and continues to serve as a reference. After reached a new high around $ 105, it happened the same as in the previous three tops, responding with a retraction. What happened before, and what can be expected to happen again, is that this retraction could serve to gain a new breath, breaking then the resistance and seeking for a new top.

Helping this retraction can be the closeness to the ascending trendline, which should also serve as a support. This significant declines that occurred in the last two sessions were made with weak volumes, which is relevant because can mean that this movement was only a profit-taking. Soon we shall see some definition in the market trend. For now, until proven otherwise, we continue in a strong bull market and the main entrances should follow this main trend…

 

[Enzzo]

Helping this retraction can be the closeness to the ascending trendline, which should also serve as a support. This significant declines that occurred in the last two sessions were made with weak volumes, which is relevant because can mean that this movement was only a profit-taking. Soon we shall see some definition in the market trend. For now, until proven otherwise, we continue in a strong bull market and the main entrances should follow this main trend…

Hi Surfingthetrend,
Doesn't bother you at all that many touches to that trendline?

 

[surfingthetrend]

Hi Surfingthetrend,
Doesn't bother you at all that many touches to that trendline?

Hello Enzzo,
No, for the contrary. The number of touches with no breakes in the trendline determines its consistency. More is better in this case

 

[Enzzo]

Hello Enzzo,
No, for the contrary. The number of touches with no breakes in the trendline determines its consistency. More is better in this case

It is funny... I tend to think just the opposite for any kind of S/R... hehehe