During Thursday night's Mad Money program, Jim Cramer talked about the elephant in the room: China. If a company has revenue from China or production in China, it's likely being pinched to some degree in the trade war.
Some like Dollar General Corp. (DG) were smart enough to get out early. But for plenty of others, it's not an option and they're feeling the pain. Let's check out the charts of DG.
In this daily bar chart of DG, below, we can see a strong uptrend in place from last June. There are pullbacks and dips along the way, and even tests of the rising 200-day moving average line.
The price action in May is particularly interesting in that prices dipped but then rallied to a new high, while the broad market has been weak. DG is above the rising 50-day average line.
The On-Balance-Volume (OBV) line is generally positive and the Moving Average Convergence Divergence (MACD) oscillator is turning up from a cover shorts buy signal and is close to an outright, go long signal.
In this weekly bar chart of DG, below, we see prices have just about doubled in the past three years. Pretty amazing for a retail name. The 40-week moving average line is positive and below the price action.
The weekly OBV line has a slight upwards drift and the MACD oscillator has been above the zero line for the past two years.
In this point and figure chart of DG, below, there is a projected upside price target of $145.
Bottom line strategy: When most of the market is going down, you have to take notice of the stocks ignoring the outgoing tide. If you are long DG, continue to hold and raise sell stop protection to $116. Our next price target: $145.