During Monday's Mad Money program, Jim Cramer told viewers about other investable themes that include the coming stimulus checks, which were a big win for Home Depot (HD) , Lowe's (LOW) and Dollar Tree (DLTR) the last time around. Let's check out the charts of the discount variety store operator Dollar Tree.
In this daily bar chart of DLTR, below, we can see how prices of DLTR have recovered from their low made back in March. Prices have traded higher in "steps" after an early retest of the low in April. Prices rallied into early June and then traded sideways in a wide consolidation pattern from $85 to $105. DLTR gapped up in late November to a new high and has since consolidated those gains with some sideways price action again.
The On-Balance-Volume (OBV) has shown some on and off improvement from May.
The Moving Average Convergence Divergence (MACD) oscillator has been in a take profits sell mode since early December.
In this weekly bar chart of DLTR, below, we can see a wide trading range market over the past three years. Prices have swung above and below the oscillating 40-week moving average line.
The OBV shows mostly a rising trend the past three years. The MACD oscillator is above the zero line but narrowing a bit.
In this daily Point and Figure chart of DLTR, below, we can see a potential downside price target in the $99 area.
In this second Point and Figure chart of DLTR, below, we used weekly close only price data. Here a potential price target of $141 is being projected.
Bottom line strategy: DLTR may or may not pull back to fill the late November price gap and retest the prior resistance around $100. If DLTR does pullback in the next few weeks, aggressive traders should consider that a buying opportunity for 2021.
