If you bought Dollar General (DG) in November last year, you are ahead 50% in six months. If I had seen that coming I would be packing my bags for the Caribbean right now.
It is always good to take a break after a strong period of trading (it keeps you grounded). Even though I missed the move from $60 to $90, there is still more upside on our charts.
In this daily chart of DG, above, we can see a pattern of rally and correction, rally and correction, and the latest rally. The On-Balance-Volume (OBV) line turned up in November. Prices are above the 50-day and the 200-day moving averages. The Moving Average Convergence Divergence (MACD) oscillator is in a buy.
This weekly chart of DG, above, is impressive. Prices are above the 40-week moving average line. The OBV line on this timeframe is positive, and the MACD oscillator is bullish. DG looks like it is headed to $100 in the intermediate-term, and it will take a decline below $85 to change the picture from bullish to cautious.