Dollar Tree (DLTR) broke sharply to the downside Thursday. How do the charts and indicators look now? Let's check.
In our last review of DLTR on March 1 we wrote that "It does not look like DLTR is finished with its current decline. Wednesday's earnings could be pivotal but I do not feel confident in recommending a purchase just yet."
In this daily bar chart of DLTR, below, we can see that prices stopped in their tracks right at the underside of the rising 200-day moving average line. Prices gapped lower on heavy volume as traders voted with their feet. All the lows going back to March were broken.
The daily On-Balance-Volume (OBV) line has been making lower highs from December. The Moving Average Convergence Divergence (MACD) oscillator is reversing its recent bullish cross above the zero line.
In this weekly Japanese candlestick chart of DLTR, below, we see a bearish picture. Prices failed at the underside of the 40-week moving average line. Support has been broken. The weekly OBV line and the MACD oscillator are bearish.
In this daily Point and Figure chart of DLTR, below, we can see the downside break and a price target in the $78 area.
Bottom line strategy: Continue to avoid the long side of DLTR as the charts are bearish.
