• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

Dollar Tree's Charts Could Weaken Further as Key Support Gets Broken

The charts of DLTR turned bearish long before the coronavirus became an "issue".
By BRUCE KAMICH
Mar 04, 2020 | 10:00 AM EST
Stocks quotes in this article: DLTR

Dollar Tree (DLTR) is the 'Stock of the Day' at Real Money. The discount retailer just reported its Q4 numbers which missed consensus forecasts. The stock is indicated lower. Let's check out the charts and the indicators. 

In this daily bar chart of DLTR, below, we can see that prices have suffered since the middle of October and have broken the lows of August. DLTR is below the declining 50-day moving average line as well as the now bearish 200-day moving average line. A bearish "dead cross" of these two averages can be seen in December.

The daily On-Balance-Volume (OBV) has been trending lower since September and tells us that sellers of DLTR have been more aggressive with heavier volume being traded on days when the stock has closed lower.

The Moving Average Convergence Divergence (MACD) oscillator shows a cover shorts buy signal in December but just turned lower at the underside of the zero line for a new sell signal.  

In this weekly bar chart of DLTR, below, we can see that prices have held the $80 level several times in 2018. $80 is key support because prices bounced off that level many times. Weakness below $80 will put a large audience under water and turn the support area into a resistance area.

The 40-week moving average line is in a downtrend well above the price action.

The weekly OBV line peaked in October and has been "rolling over" since then.

The MACD oscillator is in a bearish configuration below the zero line.  

In this daily Point and Figure chart of DLTR, below, we can see the large top pattern and a potential downside price target in the $69 area. 

Bottom line strategy: The charts of DLTR turned bearish long before the coronavirus became an "issue". DLTR has a potential downside target of $69 but the key to watch is a weekly close below the key support around $80. Avoid the long side for now.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Earnings | Investing | Stocks | Technical Analysis | Trading | Retail | Stock of the Day

More from Investing

What the Fed Has Wrought

Bret Jensen
Mar 27, 2023 11:00 AM EDT

Damage From the central bank's policy mistakes are likely to keep growing.

Movado Shows Now Isn't the Time to Issue Disappointing Guidance

Jonathan Heller
Mar 27, 2023 10:35 AM EDT

The watchmaker saw its shares hammered on its outlook, which is a cautionary tale for other stocks.

Workday's Stock Looks Ready to Make Further Gains

Bruce Kamich
Mar 27, 2023 10:34 AM EDT

Let's check the charts and indicators.

Caterpillar's Stock Was Hot, Now It's Not: Here's the Trade

Stephen Guilfoyle
Mar 27, 2023 10:15 AM EDT

Two downgrades by a highly rated analyst are not to be taken lightly.

Gilead Sciences Could Retreat Further From Here

Bruce Kamich
Mar 27, 2023 9:25 AM EDT

Share prices peaked in December.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 01:56 PM EDT PETER TCHIR

    Very Cautious

    I am very cautious here. I don't like how the c...
  • 08:58 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    How to Adjust Your Trading Style as Market Conditi...
  • 05:00 PM EDT CHRIS VERSACE

    AAP Podcast on the Fed Decision!

    Listen here!
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login